Measuring ease of doing business in India’s sub-national economies: a novel index

2018 ◽  
Vol 7 (3) ◽  
pp. 242-264 ◽  
Author(s):  
Khee Giap Tan ◽  
Sasidaran Gopalan ◽  
Will Nguyen
Keyword(s):  
Explanatory Power ◽  
National Level ◽  
Positive Association ◽  
Ground Level ◽  
Content Type ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Business Conditions ◽  
Abc Index ◽  
National Economies

Purpose The purpose of this paper is to contribute to the literature by introducing a novel index that measures ease of doing business (EDB) at the sub-national level. The authors provide a comprehensive assessment of both de jure and de facto business conditions in 21 sub-national economies of India, with the help of a holistic framework that encompasses indicators capturing Attractiveness to Investors, Business Friendliness and Competitive Policies (ABC), the three broad environments that constitute the EDB–ABC index. Design/methodology/approach The authors’ index EDB–ABC index is constructed using 81 indicators. The index values reported are standardized scores and the framework is applied to 21 Indian sub-national economies. The bottom-up approach takes into account the various operational issues that firms face at the ground level, with the emphasis being on de facto issues. A unique feature of the index is its emphasis on collecting extensive survey data at the sub-national level, given that several constraints that businesses face lie under the purview of the sub-national governments. It also combines publicly available macroeconomic data through formal statistical publications. Findings The findings suggest a positive association between the proposed EDB–ABC index and competitiveness of as well as investments into Indian sub-national economies. In terms of explanatory power, the authors find that indicators capturing attractiveness to investors and business friendliness which are representative of de facto implementation issues at the sub-national matter more than de jure competitive policies. It is also striking that the results are in stark contrast to the existing doing business studies highlighting the importance of the comprehensiveness of the index. Originality/value Easing the impediments to doing business is a pre-requisite to enhance both domestic as well as foreign investments. Existing indicators on doing business provide an incomplete picture about the prevailing business conditions as the basis for such rankings are de jure regulations and not de facto. The authors depart from this tradition by dealing with both de jure and de facto business conditions using a combination of primary and secondary data at the sub-national level in India.

A new index to measure ease of doing business at the sub-national level

2018 ◽  
Vol 25 (3) ◽  
pp. 515-537 ◽  
Author(s):  
Khee Giap Tan ◽  
Mulya Amri ◽  
Nurina Merdikawati
Keyword(s):  
Explanatory Power ◽  
National Level ◽  
Market Potential ◽  
Business Community ◽  
Primary Data ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Doing Business ◽  
Ease Of Doing Business

Purpose The purpose of this paper is to propose a novel framework to measure ease of doing business (EDB) that undertakes a holistic approach incorporating three distinct environments: attractiveness to investors, business friendliness, and competitive policies (ABC). This is offered as an alternative to existing popular indicators of doing business (DB), allowing for better approximation of investment and economic growth at the sub-national level. Design/methodology/approach The proposed “EDB Index ABC” aggregates 74 indicators into five sub-environments, three environments, and ultimately into the overall EDB Index ABC. Values are standardised using the standardised score method. The framework is applied to 33 Indonesian provinces using a combination of primary data from surveying the business community and government departments as well as secondary data from formal government statistics. Findings The findings suggest a positive association between the proposed EDB Index ABC and competitiveness as well as investments into Indonesian provinces. In terms of explanatory power, attractiveness to investors and business friendliness seem to be stronger and more consistent, while the role of competitive policies is more ambiguous. Originality/value This research departs significantly from conventional approaches to the study of DB that tend to overwhelmingly focus on formal regulatory aspects by including macroeconomic factors such as market potential and infrastructure resilience as well as micro-level variables such as profitability and cost effectiveness, and the role of government in managing competition. Responding to calls for a bottom-up approach in understanding the EDB, the EDB Index ABC is applied to 33 Indonesian provinces.

Impact of exchange rates on exports from India’s sub-national economies

2019 ◽  
Vol 8 (2) ◽  
pp. 166-184
Author(s):  
Khee Giap Tan ◽  
Sasidaran Gopalan ◽  
Jigyasa Sharma
Keyword(s):  
Exchange Rates ◽  
Export Performance ◽  
National Level ◽  
Skewed Distribution ◽  
Significant Finding ◽  
Data Set ◽  
Content Type ◽  
National Economies ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of real effective exchange rates (REER), both in terms of levels and volatility, on the export performance of India’s sub-national economies, given the recent slowdown in India’s exports. Design/methodology/approach India’s export distribution is highly asymmetric, with 90 percent of India’s exports concentrated in 11 sub-national economies. Exploiting this concentration, this paper constructs a panel data set using available data between 2002 and 2014 to understand the relationship between REER and exports from the top exporting cluster. Moreover, the paper constructs a sub-national competitiveness index to capture the supply capacity of the states. Findings The empirical findings of this paper reveal that a higher REER volatility deters exports and movements in REER do not matter as much as volatility. The most significant finding of the paper is that state competitiveness is the most crucial factor affecting trade. Therefore, policy makers at the state level must lay more emphasis on the supply side such as addressing logistical bottlenecks to help revive exports growth. Originality/value This study makes a departure from the plethora of extant aggregate-level studies by examining the relationship between REER and exports at the sub-national level for India. Considering the highly skewed distribution of India’s exports, the study provides important insights into the exporting patterns and determinants that are at play at the sub-national level.

Policies could damage Tanzania’s strong growth trend

2017 ◽  
Keyword(s):  
Tax Evasion ◽  
Financial Services ◽  
Growth Trend ◽  
Sharp Drop ◽  
Content Type ◽  
Doing Business ◽  
The World ◽  
Ease Of Doing Business ◽  
Tourism Revenue ◽  
Growing Population

Significance The World Bank’s 2017 Ease of Doing Business ranking shows Tanzania improving, moving up to 132nd place from 144 last year. However, an austerity drive and a crackdown on tax evasion may undermine progress. Businesses have shuttered since President John Magufuli took office, and commercial retrenchment could dampen key growth sectors including construction, telecoms and financial services. Impacts A fast-growing population of 53 million will add to an already large consumer base. A sharp drop in tourism revenue could prompt a review of taxation on the sector. Natural gas discoveries could boost revenue, but exports will only begin in the next decade.

Nigeria’s 2020 budget plans could prove impossible

2019 ◽  
Keyword(s):  
Interest Rate ◽  
World Bank ◽  
Growth Potential ◽  
High Interest Rate ◽  
Content Type ◽  
National Assembly ◽  
Doing Business ◽  
Deficit Financing ◽  
Rate Environment ◽  
Ease Of Doing Business

Subject Nigeria's 2020 budget. Significance President Muhammadu Buhari on October 8 proposed a 10.3-trillion-naira (28.4-billion-dollar) budget for 2020. The budget plans to increase spending on much-needed infrastructure, while deficit financing trends also look set to continue with a proposed 2.18-trillion-naira deficit. However, the proposed budget is plagued by the same challenges that have crippled previous Buhari plans, namely overly optimistic revenue expectations. Impacts A curtailing of infrastructure spending, combined with the high interest rate environment, will likely limit the economy's growth potential. Increased compliance costs could hurt an already diminished investment reputation and future World Bank ‘ease of doing business’ rankings. An easier relationship between the presidency and the national assembly should see the budget passed without the major delays of past years.

Investment ease will shape East Africa’s recovery

2020 ◽  
Keyword(s):  
Limited Resources ◽  
East African ◽  
Content Type ◽  
Doing Business ◽  
Developing Markets ◽  
Ease Of Doing Business ◽  
Economic Slowdown

Significance However, with FDI flows expected to be much reduced amid the global economic slowdown, especially for ‘riskier’ frontier or developing markets, ease of doing business is likely to become a much more immediate concern for companies looking to invest limited resources in the region. Impacts The challenges associated with investing in Tanzania will see non-extractives-focused companies look to other East African markets. Kenya’s poor corruption rankings will deter firms as scrutiny on anti-bribery compliance, especially for large multinationals, increases. Rwanda may prove especially attractive to small and medium-sized enterprises (SMEs) that are more cost conscious than multinationals.

scholarly journals Medición de la facilidad para hacer negocios. Índice doing business. / Measuring the ease of doing business.

2020 ◽  
pp. 31-37
Author(s):  
Myriam Lucía Pineda González ◽  
Yazmín Díaz-Chacón
Keyword(s):  
Bibliometric Analysis ◽  
Business Environment ◽  
State Regulation ◽  
Private Companies ◽  
Business Regulation ◽  
Doing Business ◽  
Regulation Mechanisms ◽  
Ease Of Doing Business ◽  
Subject Areas ◽  
National Economies

El objetivo principal de este documento es exponer la conceptualización de una metodología para medir la facilidad de hacer negocios en economías nacionales y subnacionales, validada a nivel internacional y liderada por el Banco Mundial: el Índice Doing Business. La metodología está basada en análisis bibliométrico, a partir de la base de datos especializada Scopus, de donde se obtuvieron datos y documentos para evaluar niveles de citación, áreas temáticas relacionadas, y conceptos claves. En los resultados se hace una descripción del análisis bibliométrico y se identifican los principales conceptos y procedimientos que involucra la medición de la facilidad para hacer negocios. Se concluye que la medición del ambiente de negocios en los países resulta útil para identificar los mecanismos de regulación empresarial que más han funcionado, sirviendo como referencia para reformas en países en desarrollo, entre ellos Colombia. Particularmente en Colombia se mide la influencia de la regulación estatal en la creación y funcionamiento de empresas privadas, en el documento se presenta la posición actual del país.ABSTRACT: The main objective of this document is to present the conceptualization of a methodology to measure the ease of doing business in national and sub-national economies, validated at the international level and led by the World Bank, the Doing Business index. The methodology is based on bibliometric analysis, from the specialized Scopus database, from which data and documents were obtained to evaluate levels of citation, related subject areas, and key concepts. In the results, a description of the bibliometric analysis is made and the main concepts and procedures that are involved in measuring the ease of doing business are identified. It is concluded that the measurement of the business environment in the countries is useful to identify the business regulation mechanisms that have worked the most, serving as a reference for reforms in developing countries, including Colombia. Particularly in Colombia, the influence of state regulation on the creation and operation of private companies is measured. The document presents the current position of the country.

Delhi’s arbitration policy may hit foreign investment

2018 ◽  
Keyword(s):  
Foreign Investment ◽  
Prime Minister ◽  
State Agencies ◽  
International Arbitration ◽  
Foreign Investors ◽  
Content Type ◽  
Doing Business ◽  
Legal Risks ◽  
Ease Of Doing Business

Subject India's policies on domestic and international arbitration. Significance The proposed Indian Arbitration Council Act seeks to institutionalise domestic arbitration procedures and make the country a centre for international arbitration practice. Delhi is seeking to protect its state agencies from future accountability before international arbitration courts. Impacts Accusations of partiality against India’s judiciary are likely to increase. Prime Minister Narendra Modi will appeal to foreign investors despite the legal risks they face in India. India’s reputation for ease of doing business is likely to improve only gradually.

Jokowi’s job law will lack impact absent more reforms

2020 ◽  
Keyword(s):  
Supply Chains ◽  
Job Creation ◽  
Content Type ◽  
Doing Business ◽  
Ease Of Doing Business

Significance The job creation law, designed to improve ease of doing business in Indonesia, is an ‘omnibus law’ -- a single law that revises several other laws. Petitions have been launched against it in the courts, while critics are promising to step up protests. Impacts Jokowi will try to expedite reforms to simplify the bureaucracy. In the light of the new legislation, Indonesia could attract manufacturers looking to shift supply chains from China. Jokowi will aim to pass more omnibus laws, since passing one such law is quicker than revising several items of legislation.

Sign in / Sign up

Export Citation Format

Share Document