Use this identifier to quote or link this document: http://hdl.handle.net/2072/130

Financial development, labor and market regulations and growth
Utrero González, Natalia; Fonseca, Raquel
Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa
This paper investigates the importance that market regulation and financial imperfections have on firm growth. We analyse institutions af- fecting labor market as Employment Protection Laws (EP) and Product Market Regulation (PM). We show that together with the beneficial effects of financial development, a firm will get less financing, and thus investless, in a weak financial market (finance effect), the strictness of product and labor market regulations also affect firm growth (labor effect). In particular, we show that the stricter the rules the more detrimental the influence on growth in sectoral value added for a large number of countries. We also show that the labor effect overcomes the positive finance effect.
2005-05
Desenvolupament econòmic
Política laboral
Regulació del mercat
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Working Paper
Universitat Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa);05/3
         

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