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How Doing Business Jeopardizes Institutional Reform

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Author Info
Benito Arruñada ()

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Abstract

Simplifying business formalization and eliminating outdated formalities is often a good way of improving the institutional environment for firms. Unfortunately, the World Bank’s Doing Business project is harming such policies by promoting a reform agenda that gives them priority even in countries lacking functional business registers, so that the reformed registers keep producing valueless information, but faster. Its methodology also promotes biased measurements that impede proper consideration of the essential tradeoffs in the design of formalization institutions. If Doing Business is to stop jeopardizing its true objectives and contribute positively to scientific progress, institutional reform and economic development, then its aims, governance and methodology need to change.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/1088.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1088.

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Date of creation: May 2008
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Handle: RePEc:upf:upfgen:1088

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

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

Other versions of this item:

Find related papers by JEL classification:
K22 - Law and Economics - - Regulation and Business Law - - - Corporation and Securities Law
K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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References listed on IDEAS
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  1. Benito Arruñada, 2007. "Market and Institutional Determinants in the Regulation of Conveyancers," Economics Working Papers 1034, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  2. Janine Berg & Sandrine Cazes, 2007. "The Doing Business Indicators: Measurement issues and political implications," Economic and Labour Market Papers 2007-06, International Labour Office. [Downloadable!]
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This page was last updated on 2009-11-27.

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