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The phrase "a paralysing effect on" is correct and usable in written English.
It can be used to describe a situation or influence that severely limits or hinders action or progress.
Example: "The sudden news of the layoffs had a paralysing effect on the entire team, leaving them in shock and unable to focus on their work."
Alternatives: "a crippling impact on" or "a stifling influence on".
Exact(4)
It is hardly surprising that such a fundamental disagreement about the nature of the state has a paralysing effect on governance.
Though few libel cases reach court – and fewer are won – the simple threat of action can have a paralysing effect on free speech.
It can have a paralysing effect on performance".
Frans Timmermans, the Dutch centre- left Europe minister, told the Guardian the Tory plans would have a "paralysing effect on Europe … There is more chance of a snowball surviving hell than the EU restarting debates on treaty change".
Similar(56)
Barack Obama is hoping that several measures announced on June 4th will have a similarly paralysing effect on their modern incarnation, the patent troll.According to this saga of intellectual-property misanthropy, these creatures roam the business world, buying up patents and then using them to demand extravagant payouts from companies they accuse of infringing them.
The power of memory is indeed great and heavy, and at times has a paralysing effect.
Their leaders are faced with important elections next year and the rise of Eurosceptic movements in both countries is having a paralysing effect.
Disenchantment with the authorities and all their works, balanced by mounting prejudice against the dark-skinned peoples of the Caucasus - especially Chechens who run a powerful mafia in Moscow - has had a paralysing effect.
In this historically motivated definition of science any appeal to an intelligent creator is explicitly excluded for the paralysing effect it may have on the scientific progress.
Today workers are all but stuck, thanks to the paralysing effect of the housing bust.
This viewpoint can have a paralysing grip on depressives, sometimes to a psychotic extent – but perhaps it haunts everyone.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com