The Impact of Regulation on Growth and Informality: Cross-Country Evidence
AbstractThis paper studies the effects of regulation on economic growth and the relative size of the informal sector in a large sample of industrial and developing countries. Along with firm dynamics, informality is an important channel through which regulation affects macroeconomic performance and economic growth in particular. The paper concludes that a heavier regulatory burden -- particularly in product and labor markets -- reduces growth and induces informality. These effects are, however, mitigated as the overall institutional framework improves.
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Bibliographic InfoPaper provided by Regulation2point0 in its series Working paper with number 271.
Date of creation: Jul 2005
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Web page: http://regulation2point0.org/
Other versions of this item:
- Loayza, Norman V. & Oviedo, Ana Maria & Serven, Luis, 2005. "The impact of regulation on growth and informality - cross-country evidence," Policy Research Working Paper Series 3623, The World Bank.
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