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The impact of Business Regulatory Reforms on Economic Growth

  • Jamal Ibrahim Haidar


    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics, The World Bank - The World Bank)

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.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00717423.

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Date of creation: May 2012
Date of revision:
Publication status: Published in Documents de travail du Centre d'Economie de la Sorbonne 2012.44 - ISSN : 1955-611X. 2012
Handle: RePEc:hal:cesptp:halshs-00717423
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  1. Klapper, Leora & Laeven, Luc & Rajan, Raghuram G, 2004. "Business Environment and Firm Entry: Evidence from International Data," CEPR Discussion Papers 4366, C.E.P.R. Discussion Papers.
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  17. Viviano, Eliana, 2008. "Entry regulations and labour market outcomes: Evidence from the Italian retail trade sector," Labour Economics, Elsevier, vol. 15(6), pages 1200-1222, December.
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