4. Conclusions
In this paper, I show using a natural experiment that eliminating barriers to entry cause significant productivity improvements. This is consistent with the view that entry barriers inhibit creative destruction and create inefficiencies by reducing competition for market share which decreases innovation incentives and reallocation among incumbents. While I establish the net effect of entry barriers on productivity, future work should seek to establish the specific channels through which this is manifested.
Acknowledgments
I thank the editor and an anonymous referee for helpful comments and suggestions that greatly improved the paper.