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

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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 Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1040.

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Date of creation: Jun 2007
Date of revision: Apr 2010
Handle: RePEc:upf:upfgen:1040

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Web page: http://www.econ.upf.edu/

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

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  1. Simeon Djankov & Rafael La Porta & Florencio Lopez-De-Silanes & Andrei Shleifer, 2002. "The Regulation Of Entry," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 1-37, February.
  2. 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.
  3. World Bank & International Finance Corporation, 2006. "Doing Business 2007 : How to Reform," World Bank Publications, The World Bank, number 7245, October.
  4. Benito Arruñada & Nuno Garoupa, 2001. "The choice of titling system in land," Economics Working Papers 607, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2004.
  5. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
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Cited by:
  1. Harris Selod & Klaus W. Deininger & Rabah Arezki, 2011. "What Drives the Global Land Rush?," IMF Working Papers 11/251, International Monetary Fund.
  2. Deininger, Klaus & Goyal, Aparajita, 2010. "Going digital : credit effects of land registry computerization in India," Policy Research Working Paper Series 5244, The World Bank.
  3. 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.
  4. Gaoussou Diarra & Patrick Plane, 2011. "Assessing the World Bank's influence on the good governance paradigm," Working Papers halshs-00555814, HAL.
  5. 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.
  6. Martin Ravallion, 2012. "Mashup Indices of Development," World Bank Research Observer, World Bank Group, vol. 27(1), pages 1-32, February.
  7. 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.
  8. 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.
  9. Djankov, Simeon, 2008. "The Regulation of Entry: A Survey," CEPR Discussion Papers 7080, C.E.P.R. Discussion Papers.

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