The Role of Regulatory Quality in Economic Growth

• Dr. Amina Hassan

  Department of Economics and Public Policy University of Nairobi Nairobi, Kenya

  Author

Regulatory quality is widely recognized as a key determinant of economic growth and institutional efficiency. Well-designed regulatory frameworks promote market stability, encourage investment, and reduce transaction costs, while weak regulations often hinder economic performance and increase uncertainty. This paper investigates the relationship between regulatory quality and economic growth across emerging and developed economies, with particular emphasis on governance, legal enforcement, and policy consistency. Using recent secondary data and empirical findings published between 2023 and 2025, the study compares regulatory outcomes across regions and examines how legal and administrative effectiveness influence economic development. The findings reveal a strong positive correlation between regulatory quality and long-term economic growth, especially in countries that combine transparent legal systems with effective public administration. The paper concludes with policy recommendations aimed at strengthening regulatory institutions to support sustainable economic growth.

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