Administrative Simplification and Economic Growth: A Cross Country Empirical Study

Kevin Poel, Wim Marneffe, Samantha Bielen, Bas van Aarle, Lode Vereeck

Abstract


Administrative burdens stemming from regulations are a worldwide cause of concern for policy-makers. Reducing administrative burdens has become an important policy objective in economic growth strategies for many governments. The European Commission set out a policy goal of reducing administrative burdens by 25% by 2012, although the literature provides limited evidence of its impact. Therefore, this paper examines the impact of administrative burdens on growth by using 6 business regulation variables for a panel of 182 countries. The results from the fixed effect regression analysis suggest that reducing administrative burdens in certain policy areas spurs economic growth. In particular, reducing burdens concerning start-ups and paying taxes enhances growth significantly. Furthermore, using a panel of 26 European countries, our results suggest that reducing the administrative burdens by 25% has a positive effect on growth of 1.62 % in the European Union.


Full Text: PDF DOI: 10.5430/jbar.v3n1p45

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

Journal of Business Administration Research

ISSN 1927-9507 (Print)      ISSN 1927-9515  (Online)

Copyright © Sciedu Press

To make sure that you can receive messages from us, please add the 'Sciedu.ca' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.