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Assessing the distributional effects of regulation in developing countries

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  • Adams, Samuel
  • Atsu, Francis

Abstract

The paper examines the effect of regulation on income inequality for 72 developing countries over the 1970–2012 period using General Method of Moment estimation technique. The results show that regulation is positive and significantly related to income inequality. The results indicate that regulation has differential effects in developing countries, with the most detrimental effect in Latin America. After controlling for types of regulation, it emerges that labor and general business regulations have a positive effect, while credit market regulations have no effect on the distribution of income.

Suggested Citation

  • Adams, Samuel & Atsu, Francis, 2015. "Assessing the distributional effects of regulation in developing countries," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 713-725.
    • Handle: RePEc:eee:jpolmo:v:37:y:2015:i:5:p:713-725
    DOI: 10.1016/j.jpolmod.2015.08.003
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    2. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    3. Basto, R. & Gomes, S. & Lima, D., 2019. "Exploring the implications of different loan-to-value macroprudential policy designs," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 66-83.
    4. Samuel Adams & Edem Kwame Mensah Klobodu, 2019. "Urbanization, Economic Structure, Political Regime, and Income Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 971-995, April.
    5. Adams, Samuel & Klobodu, Edem Kwame Mensah, 2017. "Capital flows and the distribution of income in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 55(C), pages 169-178.
    6. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Regulation; Democracy; Income distribution; Developing countries; System General Method of Moment (GMM);
    All these keywords.

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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