Doing Business in Indonesia: Legal and Bureaucratic Constraints
AbstractThe World Bank's new series of Doing Business reports attempt to measure the relative ease of doing business in countries around the world. The output of this research is a set of rankings that enable each country to see how it looks relative to the others from the point of view of private sector businesses. This paper highlights a number of concerns about the Doing Business methodology, and presents a critique of the 'law and finance' view regarding the influence of legal system origins on countries' economic performance, which was highly influential in the first of the Doing Business reports. Selected data from the 2006 report are used to explain why Indonesia is having difficulty getting back to Soeharto-era rates of economic growth. The report's findings in relation to Indonesia are then interpreted within the framework of an analysis of the way the Soeharto 'franchise' operated.
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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2006-12.
Length: 39 pages
Date of creation: 2006
Date of revision:
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More information through EDIRC
business regulation; contract enforcement; law and finance; legal heritage;
Find related papers by JEL classification:
- K2 - Law and Economics - - Regulation and Business Law
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-28 (All new papers)
- NEP-CSE-2006-10-28 (Economics of Strategic Management)
- NEP-LAW-2006-10-28 (Law & Economics)
- NEP-REG-2006-10-28 (Regulation)
- NEP-SEA-2006-10-28 (South East Asia)
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