Competition enhancing effects of the reduction of entry-related administrative burdens

This project is to a great extent funded by the Competition Culture Centre of the Hungarian Competition Authority. The project aims to analyze the competition enhancing effects of reduction in administrative costs related to starting a business.

Firstly, we summarize the relevant literature and collect datasets that might be useful for a primary analysis (e.g. OECD and World Bank indicators). We specifically focus on the identification and measurement of administrative costs that affect new market entrants.

Secondly, we collected the firm-level datasets available in the subject based on the administrative burden measurement conducted by Deloitte in 2009 and international surveys. We particularly focused on the measurements that use the standard cost model methodology. After reviewing the literature we chose the sectors in which new entrants most likely face the highest level of administrative burdens. We interviewed managers of companies in the selected sectors about the entry-related administrative costs.

Besides the review of international and Hungarian literature in the topic, our goal was to set out the basis for a later representative survey that could identify and separate the entry-related administrative burdens in Hungary.