Private Sector Development and Governance
27 Pages Posted: 23 Jul 2015
Date Written: July 22, 2014
In the past few years economic research has empirically established the link between “good” regulation and development and there is a broad consensus over the fact that regulatory quality matters for economic growth. Up to now, however, there has not been much research on the determinants of regulation, since this link is difficult to establish empirically to data restrictions and methodological issues. In our panel data analysis with over 100 countries for the period from 1970 to 2005 we find some evidence that the private sector, especially foreign direct investment, plays a significant role in regulatory making.
Keywords: Institutions, Regulations, Private Sector, Trade, FDI
JEL Classification: L51, O55, F19, F20
Suggested Citation: Suggested Citation