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Regulation and Growth

9 Pages Posted: 29 Mar 2006

See all articles by Simeon Djankov

Simeon Djankov

London School of Economics & Political Science (LSE); Peterson Institute for International Economics

Caralee McLiesh

World Bank - International Finance Corporation (IFC)

Rita Maria Ramalho

World Bank Group - Private Sector Advisory Services Department

Date Written: March 17, 2006

Abstract

Using objective measures of business regulation in 135 countries, we establish that countries with better regulations grow faster. Improving from the worst quartile of business regulations to the best implies a 2.3 percentage points increase in annual growth.

Keywords: growth, regulation, Doing Business

JEL Classification: C81, D73, O12, O47, P51

Suggested Citation

Djankov, Simeon and McLiesh, Caralee and Ramalho, Rita Maria, Regulation and Growth (March 17, 2006). Available at SSRN: https://ssrn.com/abstract=893321 or http://dx.doi.org/10.2139/ssrn.893321

Simeon Djankov (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

Caralee McLiesh

World Bank - International Finance Corporation (IFC) ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

Rita Maria Ramalho

World Bank Group - Private Sector Advisory Services Department ( email )

Washington, DC 20433
United States

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