The Impact of Business Regulatory Reforms on Economic Growth

Journal article: 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.

Author(s)

Jamal Ibrahim Haidar

Journal
  • Journal of the Japanese and International Economies
Date of publication
  • 2012
Keywords JEL
E23 L51 O47
Keywords
  • Economic Growth
  • Growth
Pages
  • 285-307
Version
  • 1
Volume
  • 26