IDEAS home Printed from https://ideas.repec.org/p/nbp/nbpmis/165.html
   My bibliography  Save this paper

The analysis of the impact of regulatory environment on the pace of economic growth of the world countries according to the Bayesian Model Averaging

Author

Abstract

The study examines the relationship between the regulatory variables and economic growth on the basis of Bayesian model pooling applied to Blundell and Bond’s GMM system estimator. The areas of regulations (institutions) are measured by the following indicators: index of economic freedom, worldwide governance indicators, democracy index, doing business indicators, transition indicators. The models are estimated based on overlapping panel data and they include nonlinearities. In general, regulatory environment is an important determinant of economic growth. To achieve rapid growth, it is necessary to increase economic freedom, quality of governance, and market reforms. The association between regulatory variables and GDP dynamics is mostly nonlinear.The countries with greater scope of economic freedom record more rapid GDP growth but a given increase in economic freedom has a higher impact on growth in those countries that are economically not (or partly) free. However, the results are not robust in a lot of areas – with regard to the sample of countries, the exact measure of the regulatory variable, and the type of nonlinear impact (concave vs. convex functions). There are many factors affecting both regulations and GDP dynamics as well as many transmission channels between these areas and the results sometimes are mixed.

Suggested Citation

  • Mariusz Próchniak & Bartosz Witkowski, 2013. "The analysis of the impact of regulatory environment on the pace of economic growth of the world countries according to the Bayesian Model Averaging," NBP Working Papers 165, Narodowy Bank Polski, Economic Research Department.
    • Handle: RePEc:nbp:nbpmis:165
    as

    Download full text from publisher

    File URL: http://www.nbp.pl/publikacje/materialy_i_studia/165_en.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Pasquale Tridico, 2007. "Institutions, Human Development and Economic Growth in Transition Economies," The European Journal of Development Research, Taylor and Francis Journals, vol. 19(4), pages 569-593.
    2. Próchniak, Mariusz & Witkowski, Bartosz, 2013. "Time stability of the beta convergence among EU countries: Bayesian model averaging perspective," Economic Modelling, Elsevier, vol. 30(C), pages 322-333.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    economic growth; regulations; institutions; growth factors; Bayesian averaging;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpmis:165. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zbigniew Polański). General contact details of provider: http://edirc.repec.org/data/nbpgvpl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.