The Drivers of Deregulation in the Era of Globalization

29 Pages Posted: 7 Mar 2006 Last revised: 26 Aug 2008

See all articles by Friedrich Heinemann

Friedrich Heinemann

ZEW – Leibniz Centre for European Economic Research; University of Heidelberg - Alfred Weber Institute for Economics

Date Written: 2006

Abstract

This paper treats the question to what extent globalization trends restrict a country specific regulation policy in industrial countries. The empirical analysis makes use of recently collected regulation indicators for four policy fields: financial market, product markets, labour markets and trade. After a short discussion of the link between globalization and deregulation and a descriptive view at the correlations, a panel analysis for OECD countries for the period 1975 to 2001 is executed. The evidence shows that globalization in the narrow sense of trade openness and capital mobility has a rather limited impact as an immediate driver of deregulation. However, in a wider sense globalization definitions also comprise the easier flow of knowledge and information across borders resulting in more effective cross-border learning processes.

Keywords: economic policy reforms, structural reforms, regulation

JEL Classification: E63, H00

Suggested Citation

Heinemann, Friedrich, The Drivers of Deregulation in the Era of Globalization (2006). ZEW - Centre for European Economic Research Discussion Paper No. 06-012, Available at SSRN: https://ssrn.com/abstract=887691 or http://dx.doi.org/10.2139/ssrn.887691

Friedrich Heinemann (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

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D-68034 Mannheim, 68034
Germany

HOME PAGE: http://www.zew.de

University of Heidelberg - Alfred Weber Institute for Economics ( email )

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Heidelberg, D-69117
Germany

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