Economic Effect of Regulatory Reforms in Korea

KDI Policy Study 2016-01 (eng)

36 Pages Posted: 17 Mar 2017

See all articles by Jungwook Kim

Jungwook Kim

Korea Development Institute (KDI)

Date Written: November 30, 2016

Abstract

This paper adapts the World Bank Regulatory Quality Index (RQI) which is produced annually to have better understandings on effects of regulatory reforms, instead of the Production Market Regulation (PMR) indicators published every 5 years. Firstly, this analysis indicates that GDP per capita will be raised by 17~29.8% when the index increases by one unit. Secondly, we find that 9.9 to 32.2 billion USD worth of regulatory cost could be reduced, if the regulatory quality in Korea improves to the level of the OECD average considering that the total burden of regulation in Korea is estimated 2.2 to 354.7 billion USD. The estimate of regulatory cost reduction takes roughly 0.76 to 2.47% of Korea’s GDP in 2013, underscoring the importance of regulatory reforms for the Korean economy.

Suggested Citation

Kim, Jungwook, Economic Effect of Regulatory Reforms in Korea (November 30, 2016). KDI Policy Study 2016-01 (eng). Available at SSRN: https://ssrn.com/abstract=2934040

Jungwook Kim (Contact Author)

Korea Development Institute (KDI) ( email )

263 Namsejong-ro
Sejong-si 30149
Korea, Republic of (South Korea)

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