Table 3.3: Economic Growth and Burden of Regulation: Basic Specification, 1990–2003 Estimation method: ordinary least squares Dependent variable: Economic growth: Average annual growth rate of GDP per capita Type of regulation index Overall [1]
Product market [2]
Labor [3]
⫺2.8829 ⫺2.51
⫺3.8652 ⫺2.82
⫺0.6269 ⫺0.96
0.2002 0.21
⫺0.4878 ⫺2.18
⫺0.6815 ⫺2.75
⫺0.2136 ⫺0.98
⫺0.2452 ⫺1.09
Initial education (log of secondary enrollment rate in 1990)
0.5290 1.24
0.4636 1.17
0.5397 1.13
0.5780 1.13
Initial financial depth (log of private domestic credit / GDP in 1990)
0.1972 0.71
0.1812 0.63
0.3006 1.06
0.3523 1.27
⫺1.7304 ⫺3.62
⫺1.8200 ⫺3.94
⫺1.7173 ⫺3.06
⫺1.6389 ⫺2.91
4.6315 2.70
6.7602 3.22
0.7900 0.48
0.2706 0.18
Regulation (index ranging from 0 to 1, higher meaning more regulated)
Fiscal [4]
Control Variables: Initial GDP per capita (in logs)
Sub-Saharan Africa dummy (1 if country belongs to Sub-Saharan Africa and 0 otherwise) Constant Observations (N) R-squared
75 0.34
75 0.36
75 0.28
75 0.34
85
Source: Authors’ calculations. Note: The sample is 75 countries. Standard errors are robust to heteroscedasticity (Newey-West). t-statistics are presented below the corresponding coefficient.