It has allowed many players to play for counties without being regarded as an overseas player with Glamorgan the only county so far not to go down that route.
Warwickshire's director of cricket Ashley Giles, who is also an England selector, has become so frustrated by the situation he has slammed counties as being "lazy" rather than search for English talent.
Vaughan has become equally irritated by the Kolpak movement, although he believes if the players are top quality they can provide huge benefits to emerging English players.
"I'm slightly concerned about it," he admitted. "There are a number which have obviously taken over a couple of the teams but I can only speak from my experience at Yorkshire.
"We have two very good ones in Jacques Rudolph and Deon Kruis who have added a lot to the team as well. As much as they can be a negative there are a lot out there who can improve the standards and the training.
"A lot of the young players at Yorkshire are looking up to those two now so I can only speak from my experience and the two we've had have been very good."
But other counties - particularly Northamptonshire and Leicestershire - have hired lesser-talented Kolpak players - a situation which Vaughan believes can undermine England's talent pool.
"Looking around the whole circuit, there seem to be a few who aren't doing that and that's my biggest concern," said Vaughan.
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