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Regulatory accumulation and economic growth: An empirical approach for Colombia

No. 97 (2024-06-30)
https://doi.org/10.13043/DYS.97.6

Abstract

Nowadays, there is no consensus on the effects of regulation on economic growth. In this document, we analyze the relationship between regulation and economic growth for Colombia, using data on the accumulation of regulation and real GDP during the 1991 - 2019 period for 9 large productive sectors of the Colombian economy. Different models are estimated using time series and panel data techniques to present evidence at the economic sector level. The results show that, for some sectors, such as agriculture, forestry, fishing, mining, manufacturing, electricity, gas and water, commerce, restaurants and hotels, financial and business services and community, social and personal services, there exists an inverted U relationship between regulatory accumulation and GDP. These results offer important lessons for those responsible for the design and formulation of public policies on matters of regulatory improvement.

Keywords: REGCOL, regulation, economic growth, economic sectors, time series, panel data, Colombia

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