Do Business-Friendly Reforms Boost GDP?
|Title:||Do Business-Friendly Reforms Boost GDP?||Authors:||Adhikari, Tamanna; Whelan, Karl||Permanent link:||http://hdl.handle.net/10197/11268||Date:||Dec-2019||Online since:||2020-02-11T12:05:31Z||Abstract:||We use the time series variation in the World Bank’s “distance to frontier” estimates of the ease of doing business to assess the effects of changes in this variable on real GDP per capita. The use of Vector Autoregression techniques allows us to identify shocks to the ease of doing business that are initially uncorrelated with GDP, thus addressing an important endogeneity problem that affects the cross-sectional literature on this topic. The results are surprising. We report a robust finding that improvements to the ease of doing business have at least a temporary negative impact on GDP and find little evidence for a positive effect in the years following these improvements.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Start page:||1||End page:||37||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP2019/30||Copyright (published version):||2019 the Authors||Keywords:||Economic growth; Business environment; Doing business||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.