About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

9 J.L. Pol'y & Globalization 1 (2013)

handle is hein.journals/jawpglob9 and id is 1 raw text is: Journal of Law, Policy and Globalization wwwiiste.org ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online) Vol.9, 2013 1154 The Impact of Regulation according to International law on economic growth in ECO countries Zaei, Karim' Gudarzi Farahani, Yazdan2 1. M.A student in International Law, Faculty of Law and Political Science, University of Tehran, Iran. 2. M.A. student in Economics, University of Tehran, Faculty of economics, Shomali Kargar, Tehran, Iran. • E-mail of the corresponding author: karimzaeiayahoo.com. Abstract This paper investigates the long-run relationship between regulation and economic growth for a panel of ECO countries over the period 1990-2011 by employing the recently developed panel data unit root tests and the Pedroni panel data cointegration techniques. In particular, building effective regulatory structures in ECO countries is not simply an issue of the technical design of the most appropriate regulatory instruments; it is also concerned with the quality of supporting regulatory institutions and capacity. This paper explores the role of state regulation using an econometric model of the impact of regulation on growth. Furthermore, conditional on finding cointegration, the paper extends the literature by employing the Pedroni Panel Fully Modified Ordinary Least Squares (FMOLS) procedure to generate consistent estimates of the relevant panel variables. The results based on two different techniques of estimation suggest a strong causal link between regulatory quality and economic performance. Keywords: Regulatory, Economic Growth, Panel Cointegration, ECO countries. 1. Introduction The role of an effective regulatory regime in promoting economic growth and development has generated considerable interest among researchers and practitioners in recent years. Regulation can take many forms and the form of regulation policy adopted in developing countries has shifted over time (Minogue, 2005). From the 1960s to the 1980s, market failure was used to legitimize direct government involvement in productive activities in developing countries, by promoting industrialization through import substitution, investing directly in industry and agriculture, and by extending public ownership of enterprises. However, following the apparent success of market liberalization programmers in some developed countries, and the evidence of the failure of state-led economic planning in developing ones, the role of state regulation was redefined and narrowed to that of ensuring an undistorted policy environment in which efficient markets could operate. Deregulation was widely adopted, often as part of structural adjustment programmers, with the aim of reducing the regulatory burden on the market economy (Jalilian and et al, 2007).

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most