Chapter

The impact of regulation on growth and informality: cross-country evidence <sup>*</sup>

Norman V. Loayza, Ana María Oviedo and Luis Servén

in Linking the Formal and Informal Economy

Published in print September 2006 | ISBN: 9780199204762
Published online September 2006 | e-ISBN: 9780191603860 | DOI: http://dx.doi.org/10.1093/0199204764.003.0007

Series: WIDER Studies in Development Economics

 The impact of regulation on growth and informality: cross-country evidence *

More Like This

Show all results sharing this subject:

  • Economic Development and Growth

GO

Show Summary Details

Preview

This paper studies the effects of regulation on economic growth and the relative size of the informal sector in a large sample of industrial and developing countries. Along with firm dynamics, informality is an important channel through which regulation affects macroeconomic performance and economic growth. A heavier regulatory burden, particularly in product and labour markets, reduces growth and induces informality. These effects are, however, mitigated as the overall institutional framework improves.

Keywords: informal sector; growth; regulations; governance

Chapter.  5849 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.