The Impact of Regulation on Economic Growth in Developing Countries: A Cross-Country Analysis

Jalilian, Habib; Kirkpatrick, Colin; Parker, David

doi:10.1016/j.worlddev.2006.09.005

Cited by 287 publications

(174 citation statements)

References 40 publications

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“…Hence, it is possible that the overall negative effect of corruption is caused due to more of unacceptable forms of corruption. For instance, if bribes are paid to government officials to overcome bureaucratic delays in starting business and any inefficient rules associated with them, then allowing such corruption will facilitate investments and have a beneficial effect on economic activity (Leff [40]; Huntington [32] and Lui [41] are good papers to read on how corruption enhances economic growth). A negative effect here suggests that this might not be the case.…”

Section: Multiple Meta-regression Analysismentioning

confidence: 99%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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With economists and policy makers recognising the role of governance for growth, recent research focus is on governance and its impact on growth. However, with ever growing number of studies using different methodologies, data sources and country groupings, a high amount of heterogeneity is created among reported results. This has left both policy makers and researchers having different views on the importance of governance for growth. This paper has meta-synthesised the empirical evidence on governance and growth in South and East Asia Pacific countries based on 29 studies with 554 estimates from 1980 -2012. The empirical results show that while corruption is significantly and negatively correlated with growth, government effectiveness and regulation are positively and significantly correlated. Political stability and law have no important effect on economic growth. We conclude that empirical research literature on governance and growth has failed to provide evidence of a true effect of voice and accountability on growth. Finally, overall governance is important for growth. Our results have important policy implications.

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Section: Multiple Meta-regression Analysismentioning

confidence: 99%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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“…Jalilian et al (2007) investigate the impact of regulatory quality on both a cross-section of 117 countries and a panel of 96 countries from 1980 to 2000 using the World Bank Governance Indicators and government/regulation data from the International Country Risk Guide (ICRG). The authors observe conditional convergence once a variable for government effectiveness or regulatory quality is included, all of which seem to be positively associated with economic growth.…”

Section: Introductionmentioning

confidence: 99%

“…2 The general finding of these studies is that low-quality regulation has adverse effects by 1 For an overview of studies using the Economic Freedom Index see De Haan et al (2005 increasing the firm's costs, reducing factor accumulation, investment and productivity, distorting the efficient allocation of resources and restricting firm entry and competition among existing firms (Eifert 2009) 3 . Especially developing countries might be prone to problems associated with excessive regulation that has been introduced by government officials to increase their rents (Jalilian et al 2007). …”

Section: Introductionmentioning

confidence: 99%

Regulation, trade and economic growth

Silberberger

Königer

2016

Economic Systems

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThe role of regulatory quality as one of the so-called deep determinants of growth has emerged as an important issue in economic research in the past 20 years. The positive or negative growth effects of a country's regulatory framework are amplified by economic integration, which makes factors and producers more mobile and enables them to avoid burdensome regulation. Therefore, the two potential determinants to growth might be interlinked. So far there is very little empirical evidence on the impact of the regulatory framework in an integrated economy on growth. We deal with the most common problems in estimating growth equations by using internal instruments to identify a causal relationship between regulation and growth in the presence of international trade and find evidence that both regulation and trade have a significant positive influence on growth, with the effect of regulation being especially pronounced for countries that have worse regulatory quality and for middle-income countries.2

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“…The common argument in these papers is the vital role played by the regulatory environment in the stability and efficiency of financial and banking systems in developing countries. Jalilian, Kirkpatrick, & Parker (2007) show that both efficiency and quality of regulations are vital in optimizing a nation's economic output. Graham & Woods (2006) argue that "the quality and efficiency of regulation, the degree to which it is employed in the areas in which it is most needed, and the degree to which private sector solutions are allowed to be implemented when appropriate", are all important for financial stability.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Crises, Income Levels and Access to Finance

Kaya

2017

Studies in Business and Economics

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Abstract:In this study, we examine the impact of the 2008 Global Crisis on "access to finance" in high-income OECD, high-income non-OECD, middle-income, and low-income countries. We use three measures of access to finance. These are "Number of bank branches per 100,000 adults", "Value traded of top 10 traded companies to total value traded (%)", and "Market capitalization outside of top 10 largest companies to total market capitalization (%)". During the run-up to the crisis and immediately after the crisis, we do not find any significant change in any of the three "access to finance" measures. We find that, during the crisis, only middle-income countries were affected significantly. These countries were affected in only one of the measures which is "Value traded of top 10 traded companies to total value traded (%)". This measure went up and this change is marginally significant. We conclude that the global crisis only affected "access to finance" in middle-income countries.

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The Impact of Regulation on Economic Growth in Developing Countries: A Cross-Country Analysis

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Cited by 287 publications

References 40 publications

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Regulation, trade and economic growth

Financial Crises, Income Levels and Access to Finance

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