Analysis of the Economic Growth Effects by Credit Labor Business Regulations Focusing on OECD Countries

Abstract

This study tries to estimate the effects of economic growth and regulations through the panel model by using a yearly panel data set covering 38 OECD countries. In this study, each country's regulations were subdivided into credit market regulations, labor market regulations, and business regulations, and the impact of each regulation on economic growth was empirically analyzed. This paper: ( ) finds the business deregulation has a significant effect on economic growth. Among the three regulations, business regulation was found to have a significant effect on economic growth; ( ) finds the inflation has a negative effect on economic growth, and the high inflation in the countries indicates that the economy is unstable, then it is negative for economic growth; ( ) finds the government expand increases, it has a negative impact on the next year's economic growth, so the expansion of government fiscal spending should clarify the limitations of fiscal spending as it increases the tax burden and lowers savings capacity for the people; ( ) finds the increase in per capita GDP has a negative effect on economic growth, which is prominent in high-income countries such as OECD countries, and it has a limited economic growth rate than low-income countries. As the economic paradigm shifts rapidly, such as digital transformation, it suggests that deregulation of companies is required for sustainable economic growth.