The Impact of Higher Quality Government Regulation of Business and Greater Economic Freedom on the Growth and Level of Living Standards: Evidence from OECD Nations

Journal of Entrepreneurship and Public Policy, 2016, Vol. 5 (1), pp. 82-94

Posted: 16 Apr 2016 Last revised: 23 May 2016

See all articles by Richard J. Cebula

Richard J. Cebula

Armstrong Atlantic State University; Jacksonville University (Florida)

Fabrizio Rossi

University of Cassino and Southern Lazio

J. R. Clark

The University of Tennessee at Chattanooga

Date Written: April 14, 2016

Abstract

This study investigates the impacts of higher quality public regulation of business, as well as greater economic freedom, on growth in the standard of living (as measured by increased per capita real GDP) in OECD nations over the 2003-2007 study period. Using a pooled time-series/cross section dataset, the estimation results provide support for the two central hypotheses being investigated: (1) the greater the increase in regulatory quality, the higher the growth rate of the standard of living; and (2) the greater the increase in economic freedom, the higher the increase in the standard of living. This study takes the perspective that factors acting to promote increased entrepreneurship, inclusive of publicly-traded corporations, elevate the increase in real living standards as well as the level of living standards. Modest robustness testing provides further support for these conclusions.

Keywords: Quality of public corporate regulation; quality regulation of firms; economic freedom; living standards

JEL Classification: G30; G38; E02; E43; H22; H26

Suggested Citation

Cebula, Richard J. and Rossi, Fabrizio and Clark, Jeff R., The Impact of Higher Quality Government Regulation of Business and Greater Economic Freedom on the Growth and Level of Living Standards: Evidence from OECD Nations (April 14, 2016). Journal of Entrepreneurship and Public Policy, 2016, Vol. 5 (1), pp. 82-94. Available at SSRN: https://ssrn.com/abstract=2764995

Richard J. Cebula (Contact Author)

Armstrong Atlantic State University ( email )

11935 Abercorn Street
Savannah, GA 31419
912-921-3781 (Phone)
912-921-3782 (Fax)

Jacksonville University (Florida) ( email )

Jacksonville, FL 32211
United States

Fabrizio Rossi

University of Cassino and Southern Lazio ( email )

Via G. Di Biasio, 43
Cassino, Frosinone 03043
Italy

Jeff R. Clark

The University of Tennessee at Chattanooga ( email )

Department of Economics
Suite 313 Fletcher Hall
Chattanooga, TN 37403-2598
United States

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