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Pitfalls to Avoid when Measuring Institutions: Is 'Doing Business' Damaging Business?

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  • Benito Arruñada

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

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 451.

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Date of creation: Apr 2010
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Handle: RePEc:bge:wpaper:451

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Keywords: Starting business; doing business; informal economy; company registers;

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References

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  1. Benito Arruñada, 2001. "Property enforcement as organized consent," Economics Working Papers 564, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Djankov, Simeon & La Porta, Rafael & López-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," CEPR Discussion Papers 2953, C.E.P.R. Discussion Papers.
  3. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
  4. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
  5. Benito Arruñada, 2007. "Market and institutional determinants in the regulation of conveyancers," Economics Working Papers 1034, Department of Economics and Business, Universitat Pompeu Fabra.
  6. Arrunada, Benito & Garoupa, Nuno, 2005. "The Choice of Titling System in Land," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 709-27, October.
  7. World Bank & International Finance Corporation, 2006. "Doing Business 2007 : How to Reform," World Bank Publications, The World Bank, number 7245.
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Cited by:
  1. Paolo Pinotti, 2009. "Trust and Regulation: Addressing a Cultural Bias," Temi di discussione (Economic working papers) 721, Bank of Italy, Economic Research and International Relations Area.
  2. Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups And Productivity During Transition," William Davidson Institute Working Papers Series wp975, William Davidson Institute at the University of Michigan.
  3. Arezki, Rabah & Deininger, Klaus & Selod, Harris, 2011. "What drives the global"land rush"?," Policy Research Working Paper Series 5864, The World Bank.
  4. B.P. Zaaruka & J.W. Fedderke, 2011. "Measuring Institutions: Indicators of Political and Economic Institutions in Namibia: 1884 - 2008," Working Papers 236, Economic Research Southern Africa.
  5. 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 paper0810, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  6. Gaoussou Diarra & Patrick Plane, 2011. "Assessing the World Bank's influence on the good governance paradigm," Working Papers halshs-00555814, HAL.
  7. Deininger, Klaus & Goyal, Aparajita, 2012. "Going digital: Credit effects of land registry computerization in India," Journal of Development Economics, Elsevier, vol. 99(2), pages 236-243.
  8. Ravallion, Martin, 2010. "Mashup indices of development," Policy Research Working Paper Series 5432, The World Bank.
  9. Djankov, Simeon, 2008. "The Regulation of Entry: A Survey," CEPR Discussion Papers 7080, C.E.P.R. Discussion Papers.

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