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The Ease of Doing Business Index as a tool for investment location decisions

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  • Pinheiro-Alves, Ricardo
  • Zambujal-Oliveira, João

Abstract

The Ease of Doing Business Index is widely used by multinationals in their investment location decisions. Factor analysis and Chronbach’s alpha show its limited consistency and descriptive power of the business environment.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 117 (2012)
Issue (Month): 1 ()
Pages: 66-70

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Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:66-70

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Factor analysis; Alpha of Chronbach; Business environment; FDI;

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References

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  1. Claudia M. Buch & Jörn Kleinert & Alexander Lipponer & Farid Toubal, 2005. "Determinants and effects of foreign direct investment: evidence from German firm-level data," Economic Policy, CEPR & CES & MSH, vol. 20(41), pages 52-110, 01.
  2. Independent Evaluation Group, 2008. "Doing Business, An Independent Evaluation : Taking the Measure of the World Bank-IFC Doing Business Indicators," World Bank Publications, The World Bank, number 6467, October.
  3. Djankov, Simeon & La Porta, Rafael & Shleifer, Andrei & Lopez de Silanes, Florencio, 2001. "The regulation of entry," Policy Research Working Paper Series 2661, The World Bank.
  4. Simeon Djankov & Tim Ganser & Caralee McLiesh & Rita Ramalho & Andrei Shleifer, 2010. "The Effect of Corporate Taxes on Investment and Entrepreneurship," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 31-64, July.
  5. Djankov, Simeon & Freund, Caroline & Pham, Cong S., 2006. "Trading on time," Policy Research Working Paper Series 3909, The World Bank.
  6. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
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Cited by:
  1. Brixiova, Zuzana & Ncube, Mthuli, 2013. "Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia," IZA Discussion Papers 7553, Institute for the Study of Labor (IZA).

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