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Investment Climate Assessment In Indonesia, Malaysia, The Philippines And Thailand: Results From Pooling Firm-Level Data

Author

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  • ALVARO ESCRIBANO

    (Department of Economics, Universidad Carlos III de Madrid, C/Madrid 126, Getafe 28903, Madrid, Spain)

  • J. LUIS GUASCH

    (The World Bank and University of California, San Diego, USA)

  • MANUEL DE ORTE

    (Laboratorio de Economía de las Telecomunicaciones, Universidad Carlos III de Madrid, Madrid, Spain)

  • JORGE PENA

    (Laboratorio de Economía de las Telecomunicaciones, Universidad Carlos III de Madrid, Madrid, Spain)

Abstract

Investment Climate surveys (ICs) are a recent instrument used by the World Bank to identify key obstacles to country competitiveness and to guide policy reforms and government interventions in developing countries. In this paper, panel data from four ICs of four South East Asian (SEA) countries namely, Indonesia, Malaysia, The Philippines, and Thailand, are pooled to estimate total factor productivity (TFP) and allocative efficiency aspects of firms in each country, using variants of the Olley and Pakes (1996) productivity decomposition. Several economic performance results are disaggregated to obtain country-specific evaluation of the IC impacts. To establish priorities for policy reforms, the corresponding key IC results are organized in five categories: infrastructures, red tape, corruption and crime, finance and corporate governance, quality, innovation and labor skills, and other control variables.

Suggested Citation

  • Alvaro Escribano & J. Luis Guasch & Manuel De Orte & Jorge Pena, 2009. "Investment Climate Assessment In Indonesia, Malaysia, The Philippines And Thailand: Results From Pooling Firm-Level Data," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(03), pages 335-366.
    • Handle: RePEc:wsi:serxxx:v:54:y:2009:i:03:n:s0217590809003379
    DOI: 10.1142/S0217590809003379
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    Cited by:

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    2. Escribano, Álvaro & Pena, Jorge, 2009. "Empirical econometric evaluation of alternative methods of dealing with missing values in Investment Climate surveys," UC3M Working papers. Economics we098750, Universidad Carlos III de Madrid. Departamento de Economía.
    3. Qianru Liu & Jianmei Liu & Cheng Gong, 2023. "Digital transformation and corporate innovation: A factor input perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2159-2174, June.

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    More about this item

    Keywords

    Total factor productivity; investment climate; firms' perceptions; robust econometric methodology; demean Olley and Pakes decomposition; cross-country comparisons; C23; C33; C43; C51; C52;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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