Unraveling the Knots: The Economic Costs of Bureaucratic Red Tape

Abstract

Bureaucratic red tape refers to the complex and excessive regulatory procedures, rules, and formalities that impede efficient decision-making and hinder organizational productivity. It hinders economic growth by assessing inordinate non-supervisory burdens, fostering inefficiencies, and discouraging entrepreneurship. The research investigates the detrimental impact of bureaucratic red tape on economic growth. Inordinate regulations, complex procedures, and time-consuming administrative
hurdles imposed by government agencies can significantly hamper business exertion, invention, and overall profitable development. The study employs a comprehensive literature review and empirical analysis to examine the various channels through which red tape impedes economic growth. These include increased costs of doing business, reduced investment, stifled entrepreneurship, and decreased productivity. By assaying cross-country data and case studies, the study explores the extent to which red tape contributes to economic stagnation and inequality.