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Empirical Evidence Regarding Regulatory Burdens And Global Income Performance


  • LICERIO, Enedina
  • FULLERTON, Thomas M. Jr.
  • CLARK, Don P.


This paper analyzes the effects of regulatory burdens on per capita national income (GNIPC) and the potential increases in GNIPC that can result from deregulation. Previous research indicates that a rigid regulatory environment hampers income performance. The availability of more recent data and the addition of several new regulatory metrics by the World Bank now permit a broader analysis of regulatory burdens and income performance to be undertaken. Parameter estimates confirm the negative correlations earlier documented between GNIPC and red tape burdens. Model simulations are conducted to quantify potential impacts of deregulation and greater transparency on income performance. Results show that sizeable income gains, approximately $27.8 trillion, globally, can result from deregulation.

Suggested Citation

  • LICERIO, Enedina & FULLERTON, Thomas M. Jr. & CLARK, Don P., 2010. "Empirical Evidence Regarding Regulatory Burdens And Global Income Performance," Estudios Economicos de Desarrollo Internacional, Euro-American Association of Economic Development, vol. 10(2), pages 5-32.
  • Handle: RePEc:eaa:eedein:v:10:y2010:i:10_5

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    References listed on IDEAS

    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. Sambit Bhattacharyya, 2004. "Deep determinants of economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 587-590.
    3. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    4. Davidson, Russell & MacKinnon, James G., 1989. "Testing for Consistency using Artificial Regressions," Econometric Theory, Cambridge University Press, vol. 5(03), pages 363-384, December.
    5. FULLERTON, Thomas M. & DE LEON, Marycruz & KELLEY, Brian W., 2007. "Regulatory Burdens And International Income Performance," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
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    1. The Cost of Doing Business in the U.S.
      by Carl Bialik in The Numbers Guy on 2011-01-29 09:23:40


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    Cited by:

    1. Thomas M. Fullerton & Felipe I. Galan & Wm. Doyle Smith & Adam G. Walke, 2014. "An Empirical Analysis of Migratory Flows to the United States," Applied Economics and Finance, Redfame publishing, vol. 1(2), pages 11-20, November.
    2. Fullerton, Thomas M., Jr. & Kababie, Kababie & Boehmer, Charles R., 2012. "International trade and economic growth in Mexico," MPRA Paper 42991, University Library of Munich, Germany.
    3. Rangel González Erick & Torre Cepeda Leonardo E., 2014. "Determinants of the Cost of Starting a Business in Mexico," Working Papers 2014-25, Banco de México.

    More about this item


    Red Tape; International Income Performance;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies


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