Regulatory Quality

Regulatory Quality refers to the effectiveness and efficiency of government regulations and policies that guide business practices and public behavior. It assesses how well these regulations promote fair competition, protect the environment, ensure consumer safety, and support economic growth while minimizing unnecessary burdens on businesses. High regulatory quality means that rules are clear, transparent, and enforced consistently, fostering a stable environment for investment and innovation. Conversely, poor regulatory quality can lead to corruption, inefficiency, and obstacles that hinder economic development and public confidence.