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Enedina Licerio, Thomas Fullerton and Don Clark

Estudios Economicos de Desarrollo Internacional, 2010, vol. 10, issue 2, 5-32

Abstract: This paper analyzes the effects of regulatory burdens on per capita national income (GNIPC) and the potential increases in GNIPC that can result from deregulation. Previous research indicates that a rigid regulatory environment hampers income performance. The availability of more recent data and the addition of several new regulatory metrics by the World Bank now permit a broader analysis of regulatory burdens and income performance to be undertaken. Parameter estimates confirm the negative correlations earlier documented between GNIPC and red tape burdens. Model simulations are conducted to quantify potential impacts of deregulation and greater transparency on income performance. Results show that sizeable income gains, approximately $27.8 trillion, globally, can result from deregulation.

Keywords: Red Tape; International Income Performance (search for similar items in EconPapers)
JEL-codes: F43 (search for similar items in EconPapers)
Date: 2010
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