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Determinants of regulatory reform

Djankov, Simeon, Georgieva, Dorina and Ramalho, Rita (2017) Determinants of regulatory reform. Financial Markets Group Discussion Papers (765). Financial Markets Group, The London School of Economics and Political Science, London, UK.

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Using panel data for 189 economies from 2004 to 2016, we show that regulatory reform is associated with periods of fiscal imbalances. This association is significant in advanced economies and in post-communist countries. The presence of IMF programs in developing countries, a consequence of fiscal pressures, encourages regulatory reform. However, the effect of fiscal imbalances on reform weakens when governments can rely on low borrowing costs. Fiscal imbalances spur political change too, though the latter also has a significant independent effect on the proclivity for regulatory reform.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2017 The Authors
Divisions: Financial Markets Group
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
JEL classification: H - Public Economics > H1 - Structure and Scope of Government > H10 - General
H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit; Surplus
Date Deposited: 02 Jun 2023 23:03
Last Modified: 16 Sep 2023 00:01

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