The Impact of Business Regulatory Reforms on Economic Growth

Jamal Ibrahim Haidar (1, 2)

1 CES - Centre d'économie de la Sorbonne
2 PSE - Paris School of Economics

I investigate the link between business regulatory reforms and economic growth in 172 countries. I create a 5 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% increase in growth rate of GDP.

Mots clés: Economic Growth; Growth

Domaines: Economies et finances

Jamal Ibrahim Haidar. The Impact of Business Regulatory Reforms on Economic Growth. Journal of the Japanese and International Economies, 2012, 26 (3), pp.285-307. ⟨10.1016/j.jjie.2012.05.004⟩. ⟨hal-00966139⟩