In spite of offensive government regulation reform, citizen’s recognition of the
effects of regulation reform seems to be not satisfactory. This study intends to
evaluate the policy effects of government regulation reform with empirical data by
building up the regulation reform index. According to the results of this
analysis, earlier 10 years government deregulation policy seems to produce quite
positive effects on the industrial performance. Especially, individual industries
level deregulation has exerted much more effects on the profitability and the size
of incumbent businesses. However, this analysis also indicates that the positive
effects of the deregulation do not show strong and consistent results which also
do not last longer than short-term periods.