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Regulation And Economic Growth Case Study

Decent Essays
of Regulation on Economic Growth in the Developing Countries
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The Impact of Regulation on Economic Growth in the Developing Countries
In the recent years, efficient regulatory regime’ role in the enhancement of the economic growth and development has created a significant attention among the researchers. It is vital to note that regulation undertake numerous forms and the form of regulation strategy embraced by many developing countries has changed over time (Jalilian et al., 2007). From the mid-60s to the later 1980s, market failure was applied in legitimizing the direct involvement of government in the industrious actions in the developing countries, by the enhancement of industrialization through the application
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This is due to their irregular economy, as well as social challenges and the institutional features. It is vital to note that coming up with efficient regulatory arrangements in the developing countries isn’t merely an aspect of the technical design regarding the instrument of regulation; it also entails supporting the regulatory institutions’ quality, as well as the capacity (Loayza et al., 2005). There is public provision regarding the numerous institutions that support markets. Also, the efficiency of these regulatory institutions will be a critical element that aid in the determination of how appropriate the markets function. It is seen that regulatory governance’s quality will impact the regulatory results, which consequently can be anticipated to affect the growth of economy (Loayza et al., 2005). Therefore, this literature review looks at the impact of regulation on economic growth in the developing countries.
Regulation Theory
Economic regulation’s theory developed from the 19th century and the literature is now enormous. Economic regulation’s case is premised on the occurrence of the considerable market failures due to economies of scale, the production scope, imperfections of information, occurrence of incomplete markets, as well as the wealth distribution impacts. Studies have suggested that there is more pronunciation of the market failures, and thus the public regulation’s case is
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