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This paper analyzes why an entry regulation that generated large rents was abruptly abolished. We argue that the rents supporting the regulation dissipated because a new technology encouraged illegal entry by raising the cost of enforcement. In 1998 China introduced a licensing system for the...
Persistent link: https://www.econbiz.de/10013092364
This paper analyzes why an entry regulation that generated large rents was abruptly abolished. We argue that the rents supporting the regulation dissipated because a new technology encouraged illegal entry by raising the cost of enforcement. In 1998, China introduced a licensing system for the...
Persistent link: https://www.econbiz.de/10010561099
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