Lost Growth Due to Bureaucracy

Tasks

Energy Efficiency Act, Supply Chain Act, AI Act and much more: companies fear that the increasing density of detailed regulations will lead to excessive bureaucracy, which will place a burden on small and medium-sized enterprises (SMEs) in particular. At the same time, the high density of regulations could hinder the emergence of new business models and make it more difficult to set up new companies. The lack of digitalization in public administration also leads to an unnecessarily high bureaucratic burden with a given level of regulation. In this study, we want to determine the costs of lost growth due to high regulation and bureaucracy as well as a lack of digitalization in public administration. The results are intended to serve as an evidence-based contribution to the public debate and highlight the urgency of both reducing bureaucracy and digitalizing public administration.

Methods

Long-term country growth models are used to determine the impact of bureaucracy and the digitalization of public administration on a country's economic growth

Data and Other Sources

International comparative data on economic growth, regulation and bureaucracy as well as the digitalization of public administration, e.g. from the World Bank, OECD, EU.