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The Drivers of Deregulation in the Era of Globalization

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  • Heinemann, Friedrich

Abstract

This paper treats the question to what extent globalization trends restrict a countryspecific 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.

Suggested Citation

  • Heinemann, Friedrich, 2006. "The Drivers of Deregulation in the Era of Globalization," ZEW Discussion Papers 06-012, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4591
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    File URL: https://www.econstor.eu/bitstream/10419/24204/1/dp06012.pdf
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    References listed on IDEAS

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    4. Pitlik, Hans & Wirth, Steffen, 2003. "Do crises promote the extent of economic liberalization?: an empirical test," European Journal of Political Economy, Elsevier, vol. 19(3), pages 565-581, September.
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    Cited by:

    1. Roland Vaubel, 2008. "The political economy of labor market regulation by the European Union," The Review of International Organizations, Springer, vol. 3(4), pages 435-465, December.
    2. Friedrich Heinemann & Michael Förg & Eva Jonas & Eva Traut‐Mattausch, 2008. "Psychologische Restriktionen wirtschaftspolitischer Reformen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(4), pages 383-404, November.
    3. Niklas Potrafke, 2010. "Labor market deregulation and globalization: empirical evidence from OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 545-571, September.

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    More about this item

    Keywords

    economic policy reforms; structural reforms; regulation;
    All these keywords.

    JEL classification:

    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • H00 - Public Economics - - General - - - General

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