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The Ease of Doing Business Index as a tool for investment location decisions

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  • Pinheiro-Alves, Ricardo
  • Zambujal-Oliveira, João

Abstract

The Ease of Doing Business Index is widely used by multinationals in their investment location decisions. Factor analysis and Chronbach’s alpha show its limited consistency and descriptive power of the business environment.

Suggested Citation

  • Pinheiro-Alves, Ricardo & Zambujal-Oliveira, João, 2012. "The Ease of Doing Business Index as a tool for investment location decisions," Economics Letters, Elsevier, vol. 117(1), pages 66-70.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:66-70
    DOI: 10.1016/j.econlet.2012.04.026
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    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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