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The doing business indicators, economic growth and regulatory reform

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  • Hanusch, Marek
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    Abstract

    Improving the investment climate is among the top priorities in development. The World Bank Group's Doing Business reports have become an important guide and benchmark to inform regulatory reforms aimed at unleashing the potential of the private sector. This paper discusses the potential role of the Doing Business Indicators in the reform process. Generally, the Doing Business studies are constrained in their prescriptive power for policy making. However, governments that nonetheless choose to use the Doing Business reports for guidance in the reform process can aim to improve their Doing Business ranking to enhance the visibility of their general reform efforts; or they can aim at maximizing the impact of reform on economic growth. In this case, the evidence suggests that focusing on indicators relating to credit and the enforcement of contracts is the most important. Indicators related to cost have the largest potential for fostering growth.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6176.

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    Date of creation: 01 Aug 2012
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    Handle: RePEc:wbk:wbrwps:6176

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    Related research

    Keywords: E-Business; Environmental Economics&Policies; Business in Development; Business Environment; Competitiveness and Competition Policy;

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    1. Wendy Carlin & Mark Schaffer & Paul Seabright, 2006. "Where are the Real Bottlenecks? A Lagrangian Approach to Identifying Constraints on Growth from Subjective Survey Data," CERT Discussion Papers 0604, Centre for Economic Reform and Transformation, Heriot Watt University.
    2. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2005. "Investment Climate and Firm Performance in Developing Economies," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 1-31, October.
    3. repec:ilo:empelm:2007-06 is not listed on IDEAS
    4. Jean-Jacques Dethier & Maximilian Hirn & Stéphane Straub, 2011. "Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data," World Bank Research Observer, World Bank Group, vol. 26(2), pages 258-309, August.
    5. Norman V. Loayza & Luis Servén, 2010. "Business Regulation and Economic Performance," World Bank Publications, The World Bank, number 2554, October.
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