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The impact of regulation on growth and informality - cross-country evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics Loayza, Norman V.
Oviedo, Ana Maria
Serven, Luis
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The authors study 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 authors conclude 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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Paper provided by The World Bank in its series Policy Research Working Paper Series with number
3623.
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Date of creation: 01 May 2005Date of revision:
Handle: RePEc:wbk:wbrwps:3623Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433 Email: Web page: http://www.worldbank.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Roula I. Yazigi).
Keywords: Governance Indicators ; National Governance ; Environmental Economics&Policies ; Public Sector Economics&Finance ; Financial Intermediation ; Other versions of this item:
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000.
"Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation ,"
OECD Economics Department Working Papers
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[Downloadable!]
Klarita Gerxhani, 1999.
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Tinbergen Institute Discussion Papers
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Friedrich Schneider & Dominik H. Enste, 2000.
"Shadow Economies: Size, Causes, and Consequences ,"
Journal of Economic Literature ,
American Economic Association, vol. 38(1), pages 77-114, March.
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Claessens, Stijn & Klapper, Leora F., 2002.
"Bankruptcy around the world - explanations of its relative use ,"
Policy Research Working Paper Series
2865, The World Bank.
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Other versions:
Claessens, Stijn & Klapper, Leora F., 2002.
"Bankruptcy around the World: Explanations of its Relative Use ,"
CEI Working Paper Series
2002-17, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
[Downloadable!] Stijn Claessens & Leora F. Klapper, 2005.
"Bankruptcy around the World: Explanations of Its Relative Use ,"
American Law and Economics Review ,
Oxford University Press, vol. 7(1), pages 253-283.
[Downloadable!] (restricted) Loayza, Norman V., 1996.
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Carnegie-Rochester Conference Series on Public Policy ,
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R. Hirschowitz, 1989.
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South African Journal of Economics ,
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Klarita Gërxhani, 2004.
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Public Choice ,
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[Downloadable!]
Maloney, William F., 2004.
"Informality Revisited ,"
World Development ,
Elsevier, vol. 32(7), pages 1159-1178, July.
[Downloadable!] (restricted)
Other versions: Loayza, Norman V. & Oviedo, Ana Maria & Serven, Luis, 2005.
"Regulation and macroeconomic performance ,"
Policy Research Working Paper Series
3469, The World Bank.
[Downloadable!]
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Yelena Kalyuzhnova & Michael Kaser, 2006.
"Prudential Management of Hydrocarbon Revenues in Resource-rich Transition Economies ,"
Post-Communist Economies ,
Taylor and Francis Journals, vol. 18(2), pages 167-187, June.
[Downloadable!] (restricted)
Henley, Andrew & Arabsheibani, G. Reza & Carneiro, Francisco G., 2006.
"On defining and measuring the informal sector ,"
Policy Research Working Paper Series
3866, The World Bank.
[Downloadable!]
Other versions: Rita Almeida & Pedro Carneiro, 2007.
"Inequality and Employment in a Dual Economy: Enforcement of Labor Regulation in Brazil ,"
IZA Discussion Papers
3094, Institute for the Study of Labor (IZA).
[Downloadable!]
Chong, Alberto & Gradstein, Mark, 2006.
"Inequality and Informality ,"
CEPR Discussion Papers
5545, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Loayza, Norman V. & Rigolini, Jamele, 2006.
"Informality trends and cycles ,"
Policy Research Working Paper Series
4078, The World Bank.
[Downloadable!]
Almeida, Rita & Carneiro, Pedro, 2005.
"Enforcement of labor regulation, informal labor, and firm performance ,"
Policy Research Working Paper Series
3756, The World Bank.
[Downloadable!]
Almeida, Rita & Carneiro, Pedro, 2006.
"Enforcement of Regulation, Informal Labour, Firm Size and Firm Performance ,"
CEPR Discussion Papers
5976, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Era Dabla-Norris & Gabriela Inchauste, 2007.
"Informality and Regulations: What Drives Firm Growth? ,"
IMF Working Papers
07/112, International Monetary Fund.
[Downloadable!]
Rita Almeida & Pedro Carneiro, 2006.
"Enforcement of regulation, informal labor and firm performance ,"
CeMMAP working papers
CWP02/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
[Downloadable!]
Other versions: Gatti, Roberta & Honorati, Maddalena, 2008.
"Informality among formal firms : firm-level, cross-country evidence on tax compliance and access to credit ,"
Policy Research Working Paper Series
4476, The World Bank.
[Downloadable!]
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