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With which political and economic variables is change in international financial regulation robustly associated? I undertook multivariate regression analysis of this question using a quantitative measure of the regulation of international financial transactions. The measure was created by coding the laws of 64 nations. The associations between change in international financial regulation and measures of long-run economic growth, corporate taxation, government expenditures, and income inequality are estimated, using the models, methods, and data of Batro (1991), Deininger and Squire (1996a), Leamer (1983, 1985), and Levine and Renelt (1992). The findings point to a new agenda for research on international financial regulation.
Dennis P. Quinn (Mon,) studied this question.
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