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The Ease of Doing Business Rank: An Assessment of its Macroeconomic Relevance

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  • A. Arul Jason
  • Vivek Moorthy

Abstract

This paper examines the macroeconomic impact of World Bank’s Ease of Doing Business (EDB) rank, of increasing importance to policy makers, using simple but robust cross-country regressions. Its main findings are first that GDP per capita is negatively correlated with the EDB rank. Second, that average growth over a ten year period is negatively related to starting per capita income. It points to broad evidence linking these correlations to labour supply factors. Overall, it shows the EDB rank to have limited macroeconomic usefulness and relevance.

Suggested Citation

  • A. Arul Jason & Vivek Moorthy, 2016. "The Ease of Doing Business Rank: An Assessment of its Macroeconomic Relevance," Working Papers id:11442, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:11442
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    Cited by:

    1. Yi, Changjun & Zhang, Jipeng & Zhan, Yun & Yan, Xiaojuan & Chen, Chusheng, 2021. "Internationalization speed and subsidiary survival of EMNCs: The moderating roles of CEO international experience and state ownership," Journal of Asian Economics, Elsevier, vol. 77(C).
    2. Ranđelović Saša & Martinović Nikola, 2022. "National Competitiveness and Foreign Direct Investment in Emerging Europe," Economic Themes, Sciendo, vol. 60(1), pages 21-40, March.
    3. Eric Mokwaro Bosire, 2019. "Does Better Business Regulatory Environment Translate to Increased Foreign Direct Investment Inflows? Evidence from Eastern Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 119-136.
    4. Adesola Adebowale, Hammed & Ebere, Chwuks & Sola Ojo, Oloruntimilehin & Okanla Bello, Fatai, 2022. "Impacts Of Governance On Investment Climate In Sub-Sahara Africa," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 9(1), pages 30-44, June.
    5. Ogege, Samson, 2022. "Exchange Rate And Income Distribution In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 9(2), pages 47-62, June.

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