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Essay On Regulation

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regulation burden is a critical element for the businesses more so in the developing countries. Growth in the economic theory have stressed the critical impact regulation can have on the economic growth due to its effect on the entry of new organizations into the markets of developing countries. Thus regulation has a considerable impact on the competition, as well as functioning of the markets in the developing countries. Tannenwald et al. (2007) have indicated that regulation is one of the most universal practices regarding the intervention of government in the economic activities. According to Brownbridge & Kirkpatrick (2000), majority of the developing countries have implemented reforms to aid in strengthening the prudential regulation…show more content…
To date, most of the researchers have tried in applying the nature of case study. In addition, the finding’s generalization is limited by the lack of comprehensible theoretical framework. Therefore, this literature review looks at the impact of regulation on economic growth in the developing countries. The Concept of Regulation According to Den Hertog (2010), there are two wide traditions in relation to the concept of regulation. There is an assumption by the first tradition that the regulator has adequate information, as well as the implementation power authorities to efficiently promote the interest of the public. In addition, there is an assumption by the tradition that the regulators are compassionate and have an interest of pursuing the interest of the public. The regulatory concepts that advance from these suppositions are thus frequently referred as the “public interest concepts of regulation”. Den Hertog (2010) further argues that another tradition regarding the economic investigation of regulation proceeds from diverse suppositions. Regulator doesn’t have adequate information in regard to the demand, the cost, quality, as well as other scopes of the organization behavior. They can thus only impeccably enhance the interest of the public when controlling the
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