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Pitfalls to avoid when measuring institutions: Is Doing Business damaging business?

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  • Arrunada, Benito

Abstract

Over recent years, both governments and international aid organizations have been devoting large amounts of resources to “simplifying” the procedures for setting up and formalizing firms. Many of these actions have focused on reducing the initial costs of setting up the firm, disregarding the more important role of business registers as a source of reliable information for judges, government departments and, above all, other firms. This reliable information is essential for reducing transaction costs in future dealings with all sorts of economic agents, both public and private. The priorities of reform policies should therefore be thoroughly reviewed, stressing the value of the legal institutions rather than trivializing them as is often the case.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 35 (2007)
Issue (Month): 4 (December)
Pages: 729-747

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Handle: RePEc:eee:jcecon:v:35:y:2007:i:4:p:729-747

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Web page: http://www.elsevier.com/locate/inca/622864

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References

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  1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andre Shleifer, 2000. "The Regulation of Entry," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1904, Harvard - Institute of Economic Research.
  2. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
  3. Benito Arruñada, 2007. "Market and institutional determinants in the regulation of conveyancers," European Journal of Law and Economics, Springer, Springer, vol. 23(2), pages 93-116, April.
  4. Benito Arruñada & Nuno Garoupa, 2001. "The choice of titling system in land," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 607, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2004.
  5. Benito Arruñada, 2001. "Property enforcement as organized consent," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 564, Department of Economics and Business, Universitat Pompeu Fabra.
  6. World Bank & International Finance Corporation, 2006. "Doing Business 2007 : How to Reform," World Bank Publications, The World Bank, number 7245, August.
  7. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
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Cited by:
  1. James Alm & Mir Ahmad Khan, 2008. "Assessing Enterprise Taxation and the Investment Climate in Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper0810, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  2. B.P. Zaaruka & J.W. Fedderke, 2011. "Measuring Institutions: Indicators of Political and Economic Institutions in Namibia: 1884 - 2008," Working Papers, Economic Research Southern Africa 236, Economic Research Southern Africa.
  3. Rabah Arezki & Klaus Deininger & Harris Selod, 2012. "What Drives the Global Land Rush?," OxCarre Working Papers, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford 072, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  4. Gaoussou DIARRA & Patrick PLANE, 2010. "Assessing the World Bank’s influence on the good governance paradigm," Working Papers, CERDI 201038, CERDI.
  5. Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups and Productivity during Transition," CESifo Working Paper Series, CESifo Group Munich 2952, CESifo Group Munich.
  6. Ravallion, Martin, 2010. "Mashup indices of development," Policy Research Working Paper Series, The World Bank 5432, The World Bank.
  7. Paolo Pinotti, 2009. "Trust and Regulation: Addressing a Cultural Bias," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 721, Bank of Italy, Economic Research and International Relations Area.
  8. Deininger, Klaus & Goyal, Aparajita, 2010. "Going digital : credit effects of land registry computerization in India," Policy Research Working Paper Series, The World Bank 5244, The World Bank.
  9. Djankov, Simeon, 2008. "The Regulation of Entry: A Survey," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7080, C.E.P.R. Discussion Papers.

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