Document Type : Research Paper

Authors

• somayeh nematollahi ¹
• Farshad Moameni ²
• Alireza Garshasbi ³

¹ Allameh Tabataba'i University

² Department of Developemnt and planning , Faculty of Economics , Allameh Tabatabaei University

³ Associate Professor, Institute of Business Studies and Research,

Abstract

This article aims to investigate the effect of regulatory level on the growth of industrial added value and compare it in developed and developing countries. For this purpose, the estimation of a non-linear equation with the panel GMM method and delta method has been used for the years 2000 to 2019. The estimation results in a sample of 99 countries show an inverted U-shaped relationship between regulatory variables and industrial growth, and for about 67% of the sample observations, the level of growth regulation has increased and its effect on industrial growth is positive and significant. . Also, in this example, the growth maximization level for regulation was 2.61 (on a scale of 0-10). Another important result is that the nature of the relationship between regulation and industrial growth in developed countries is fundamentally different from developing countries. In particular, while the model estimate for developing countries is consistent with the findings related to the total observations and is in the form of an inverted U relationship, the findings related to developed countries are completely different and the maximizing level of industrial growth for these countries It was not observed that the reason is related to institutional differences in these two spectrums.

Keywords

• regulation
• industrial growth
• industrial policy
• developed and developing countries

Main Subjects

• Political economy