The Impact Of Government Regulation On Economic Growth

Keynes,the British economist,pointed out that with the development of social development,an important factor affecting economic growth was the intervention of a government.As one of the methods that the governments intervene the economy,the government regulation is generally recognized as an important factor in determining the economy.So the governments pay close attention to the government regulation.Government regulation refers to a series of activities which are launched by the governments to regulate the operation of various economic organizations and maintain the market development stably.Government regulation not only ensures the steady and orderly development of national economy,but also restricts the vitality of the market,leading to underground economy and bureaucratic corruption.So how to formulate appropriate government regulation policies to promote economic growth has become a very important problem.In the existing literature,the researches on government regulation were mainly based on theoretical research.The problem of the impact of government regulation on economic growth has been little studied.In this paper,we systematically calculated the intensity of government regulation and used the econometric method to empirically analyze the impact of government regulation on economic growth.Combined with the research conclusion,we analyzed the problems of government regulation in China.To realize the transition of government regulation intensity from latent variable to explicit variable,We set up the index system of government regulation intensity and selected seven first-class indicators(including 22 second-class indicators)which covered the whole life process of an enterprise to reflect the level of government regulation intensity.Because the observation indexes were numerous and can't be sum up simple,we used latent variable analysis to measure the intensity of government regulation comprehensively.We got data from the World Bank's annual report Doing Business which are from 2006 to 2018,131 countries.Due to the distribution characteristics of economic growth and the large differences in economic development among the world,we will use the quantile regression method of panel data to explore this academic topic.The resultsshowed as follows.Overall,the intensity of government economic regulation among the world is decreasing.Economic growth shows biased distribution of high kurtosis.The variation range is different among different quantiles.The variation range of economic growth rate at high quantiles is far lower than that at low quantiles.The quantile regression coefficients change with the different positions of the conditional distribution of economic growth.In other words,the impact of government regulation on economic growth is different in different quantiles.Generally speaking,government regulation has more influence to the countries with low economic growth rate.Based on the conclusion of empirical analysis,this paper discussed the related issues of China's business environments.We explained the policy implications of this study and the reform processes and current situations of government regulation of China.We discovered that China's regulatory convenience has developed rapidly from the medium level to the upstream level in the world during recent years but still can be improved.Finally,based on the above study,this paper gave some suggestions on the international trends and policy formulation.