Assessing the distributional effects of regulation in developing countries
Samuel Adams and
Francis Atsu
Journal of Policy Modeling, 2015, vol. 37, issue 5, 713-725
Abstract:
The paper examines the effect of regulation on income inequality for 72 developing countries over the 1970–2012 period using General Method of Moment estimation technique. The results show that regulation is positive and significantly related to income inequality. The results indicate that regulation has differential effects in developing countries, with the most detrimental effect in Latin America. After controlling for types of regulation, it emerges that labor and general business regulations have a positive effect, while credit market regulations have no effect on the distribution of income.
Keywords: Regulation; Democracy; Income distribution; Developing countries; System General Method of Moment (GMM) (search for similar items in EconPapers)
JEL-codes: K20 O40 O43 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (16)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:37:y:2015:i:5:p:713-725
DOI: 10.1016/j.jpolmod.2015.08.003
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