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The impact of Business Regulatory Reforms on Economic Growth

Author

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  • Jamal Ibrahim Haidar

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, The World Bank - The World Bank)

Abstract

I investigate the link between business regulatory reforms and economic growth in 172 countries. I create a five year dataset on business regulatory reforms from the World Bank's Doing Business reports. Then, I test the hypothesis that business regulatory reforms increase economic growth, using data on micro-economic reforms. These data do not suffer the endogeneity issues associated with other datasets on changes in economic institutions. The results provide a robust support for the claim that business regulatory reforms are good for economic growth. The paper establishes that, on average, each business regulatory reform is associated with a 0.15 percent increase in growth rate of GDP.

Suggested Citation

  • Jamal Ibrahim Haidar, 2012. "The impact of Business Regulatory Reforms on Economic Growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00717423, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00717423
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00717423
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    References listed on IDEAS

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    Cited by:

    1. Manuel Carlos Nogueira & Mara Madaleno, 2021. "Are International Indices Good Predictors of Economic Growth? Panel Data and Cluster Analysis for European Union Countries," Sustainability, MDPI, Open Access Journal, vol. 13(11), pages 1-24, May.
    2. Haidar, Jamal Ibrahim, 2012. "Trade and productivity: Self-selection or learning-by-exporting in India," Economic Modelling, Elsevier, vol. 29(5), pages 1766-1773.
    3. Mohammad Amin & Jamal Haidar, 2014. "Trade facilitation and country size," Empirical Economics, Springer, vol. 47(4), pages 1441-1466, December.
    4. International Monetary Fund, 2015. "Togo: Selected Issues," IMF Staff Country Reports 2015/310, International Monetary Fund.
    5. Vahagn Jerbashian & Anna Kochanova, 2016. "The impact of doing business regulations on investments in ICT," Empirical Economics, Springer, vol. 50(3), pages 991-1008, May.
    6. World Bank Group, . "Kenya Country Economic Memorandum," World Bank Other Operational Studies, The World Bank, number 24008, September.
    7. Agnieszka Głodowska & Bożena Pera, 2019. "On the Relationship between Economic Integration, Business Environment and Real Convergence: The Experience of the CEE Countries," Economies, MDPI, Open Access Journal, vol. 7(2), pages 1-19, June.
    8. Kirkpatrick, Colin, 2012. "Economic Governance: Improving the Economic and Regulatory Environment for Supporting Private Sector Activity," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    9. Scott D. Taylor, 2016. "Business rights and ethnic exclusion in sub-Saharan Africa: Addressing group-based inequality through business rights reform," WIDER Working Paper Series 153, World Institute for Development Economic Research (UNU-WIDER).
    10. Somaya Ahmed Aly Abdel-Mowla, 2012. "The Egyptian tax system reforms, investment and tax evasion (2004-2008)," Journal of Economic and Administrative Sciences, Emerald Group Publishing, vol. 28(1), pages 53-78, January.
    11. Heckelman, Jac C. & Wilson, Bonnie, 2019. "The growth-maximizing level of regulation: Evidence from a panel of international data," European Journal of Political Economy, Elsevier, vol. 59(C), pages 354-368.
    12. Edward Nketiah-Amponsah & Bernard Sarpong, 2019. "Effect of Infrastructure and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 11(3), pages 183-201, September.
    13. Jonas Rapsikevicius & Jurgita Bruneckiene & Mantas Lukauskas & Sarunas Mikalonis, 2021. "The Impact of Economic Freedom on Economic and Environmental Performance: Evidence from European Countries," Sustainability, MDPI, Open Access Journal, vol. 13(4), pages 1-20, February.
    14. Jamal Ibrahim Haidar & Takeo Hoshi, "undated". "Implementing Structural Reforms in Abenomics: How to Reduce the Cost of Doing Business in Japan," Working Paper 316046, Harvard University OpenScholar.
    15. Colin Kirkpatrick, 2012. "Economic Governance: Improving the Economic and Regulatory Environment for Supporting Private Sector Activity," WIDER Working Paper Series wp-2012-108, World Institute for Development Economic Research (UNU-WIDER).
    16. Apergis, Nicholas & Payne, James E., 2014. "The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration," Energy Economics, Elsevier, vol. 46(C), pages 1-9.
    17. Scott D. Taylor, 2016. "Business rights and ethnic exclusion in sub-Saharan Africa: Addressing group-based inequality through business rights reform," WIDER Working Paper Series wp-2016-153, World Institute for Development Economic Research (UNU-WIDER).
    18. Kelly Benetatou & Yannis Katsoulacos & Ekaterini Kyriazidou & Galateia Makri, 2020. "Competition policy and labor productivity growth: some new evidence," Empirical Economics, Springer, vol. 58(6), pages 3035-3076, June.
    19. Teimouri, Sheida & Zietz, Joachim, 2020. "Coping with deindustrialization: A panel study for early OECD countries," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 26-41.
    20. Badzińska Ewa & Brzozowska-Woś Magdalena, 2017. "Entrepreneurship in Virtual Economy: the Case of Currency One SA," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 25(3), pages 2-19, September.
    21. Valery Igorevich Belov & Anastasiya Borisovna Lovygina, 0. "Features of Government Regulation of Energy Supply System in the Region: Foreign and Domestic Experience," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management..

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    More about this item

    Keywords

    Institutions; Growth; reform; development; regulations; Doing Business; Institutions.; Réformes réglementaires; croissance économique.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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