Regulation and Investment

33 Pages Posted: 23 Jan 2003

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Silvia Ardagna

National Bureau of Economic Research (NBER); Goldman Sachs - London

Giuseppe Nicoletti

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Fabio Schiantarelli

Boston College - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: December 2002

Abstract

One commonly held view about the difference between continental European countries and other OECD economies, especially the United States, is that the heavy regulation of the former reduces their growth. Using newly assembled data on regulation in several sectors of many OECD countries, we provide substantial and robust evidence that various measures of regulation in the product markets, concerning in particular entry barriers, are negatively related to investment. The policy implication of our analysis is clear: regulatory reforms that liberalize entry are very likely to spur investment.

Suggested Citation

Alesina, Alberto F. and Ardagna, Silvia and Nicoletti, Giuseppe and Schiantarelli, Fabio, Regulation and Investment (December 2002). Available at SSRN: https://ssrn.com/abstract=373100 or http://dx.doi.org/10.2139/ssrn.373100

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

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Silvia Ardagna

National Bureau of Economic Research (NBER) ( email )

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Fabio Schiantarelli

Boston College - Department of Economics ( email )

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