Regulation, Investment, and Growth Across Countries
AbstractThis paper uses cross-country regulation data to examine the relationship between government regulation, investment, and long-run growth in a large sample of countries. The empirical results suggest that (1) highly regulated economies tend to have high rates of public investment; (2) regulation has a negative impact on private investment; (3) regulation has a negative impact on growth rates; and (4) volatility in the regulatory regime is negatively related to growth. Conclusions (1) and (4) hold even when measures of economic freedom are included in the model. Interesting implications with respect to policy toward regulatory reform are suggested.
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Bibliographic InfoPaper provided by Department of Economics, Appalachian State University in its series Working Papers with number 03-10.
Date of creation: 2003
Date of revision: 2006
Publication status: forthcoming, Cato Journal
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Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Web page: http://www.business.appstate.edu/departments/economics/
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Other versions of this item:
- John W. Dawson, 2006. "Regulation, Investment, and Growth across Countries," Cato Journal, Cato Journal, Cato Institute, vol. 26(3), pages 489-509, Fall.
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- Z0 - Other Special Topics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-11 (All new papers)
- NEP-DEV-2005-07-11 (Development)
- NEP-REG-2005-07-11 (Regulation)
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