Effects of Regulation on Economic Growth in One Hundred and Ninety Economies

Abstract

Business regulations play an important part in economic development; however they sometimes may appear excessive and impede efficient development of business sector. Therefore, to create a healthier business environment, many countries launched regulatory reforms. In this paper, I examined whether the changes or reforms of business regulation influences economic growth (GDP Per Capita Growth and GDP) and to understand how different kinds of business regulations affect economic growth differently. My hypothesis is that effective reform of business regulation has a positive effect on economic growth. And this paper finds two main conclusions: (1) Countries should launch regulatory reforms to boost their economies, especially in low- or middle-income countries; (2) Countries should focus on certain areas of regulatory reforms, such as getting electricity and paying taxes.