The Impact of Business Regulatory Reforms on Economic Growth

Citation:

Haidar, J.I., 2012. The Impact of Business Regulatory Reforms on Economic Growth. Journal of the Japanese and International Economies , 26 (3) , pp. 285-307. Copy at https://tinyurl.com/yabav9la
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Abstract:

I investigate the link between business regulatory reforms and economic growth in 172 countries. I create a 5 year dataset on business regulatory reforms from the World Bank’s Doing Business reports. Then, I test the hypothesis that business regulatory reforms increase economic growth, using data on micro-economic reforms. These data do not suffer the endogeneity issues associated with other datasets on changes in economic institutions. The results provide a robust support for the claim that business regulatory reforms are good for economic growth. The paper establishes that, on average, each business regulatory reform is associated with a 0.15% increase in growth rate of GDP.

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Last updated on 08/20/2015