Policy restrictions and services performance: Evidence from 32 countries

2014 ◽  
Vol 05 (01) ◽  
pp. 1440003
Author(s):  
Xiaobo He ◽  
Christopher Findlay
Keyword(s):  
Service Sector ◽  
Performance Indicator ◽  
Total Output ◽  
Policy Reforms ◽  
Services Delivery ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Restrictive Environment ◽  
The Impact ◽  
Trade And Investment

The impact of services trade and investment policy which affects the performance of the service sector is the topic of this paper. The performance indicator is not the services share of total output but the services shares in the gross value of goods exports. We find that a more restrictive environment for services delivery is associated with a lower services share in exports, but with a diminishing effect. The results remain robust even after extra measures of the ease of doing business (such as number of documents to export, number of days to export and "rank of trading across borders") are included. There is a significant relationship between policy and the share of services from domestic origin, including those from foreign invested firms, in exports, but not with the share of services from offshore sources. This result indicates that at present the more important impact of services policy reforms is via the establishment of new providers, rather than via trade across borders. This causal channel has important consequences for the political economy of reforms in services.

Ease of Doing Business and Its Impact on Inward FDI

2018 ◽  
Vol 1 (1) ◽  
pp. 52 ◽  
Author(s):  
Mohamed Tareq Hossain ◽  
Zubair Hassan ◽  
Sumaiya Shafiq ◽  
Abdul Basit
Keyword(s):  
Regression Model ◽  
Causal Relationship ◽  
World Bank ◽  
Least Square ◽  
Doing Business ◽  
Least Square Regression ◽  
Foreign Countries ◽  
Ease Of Doing Business ◽  
The Impact ◽  
Starting A Business

This study investigates the impact of Ease of Doing Business on Inward FDI over the period from 2011 to 2015 across the globe. This study measures ease of doing business using starting a business, getting credit, registering property, paying taxes and enforcing contracts. The research used a sample of 177 countries from 190 countries listed in World Bank. Least square regression model via E-views software used to examine causal relationship. The study found that ease of doing business indicators ‘Enforcing Contracts’ was found to have a positive significant impact on Inward FDI. Nevertheless, ‘Getting Credit’ and ‘Registering Property’ were found to have a negative significant impact on Inward FDI. However, ‘Starting a Business’ and ‘Paying Taxes’ have no significant impact on Inward FDI in the studied timeframe of this research. The findings of the study suggested the ease of doing business enables inward FDI through better contract enforcements, getting credit and registering property. The findings of the research will assist international managers and companies to know the importance of ease of doing business when investing in foreign countries through FDI.

scholarly journals Are Business Regulations Improving Economic Growth? Case Study between ASEAN and European Union

2021 ◽  
Vol 9 (1) ◽  
pp. 44-53
Author(s):  
Karuniana Dianta Arfiando Sebayang ◽  
Belinda Febrina
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Gross Domestic Product ◽  
Quantitative Research ◽  
Domestic Product ◽  
The European Union ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Business Regulations ◽  
The Impact

Economic activities require a transparent regulatory and policy environment that is accessible to all levels of society. This study aims to explain the impact of ease of doing business on economic growth in both ASEAN and the European Union since doing business indicators applied globally. Gross Domestic Product is used as a proxy variable for economic growth as Gross Domestic Product is an indicator to measure economic growth. This study uses a descriptive quantitative research model and uses multiple regressions to determine the effect of ease of doing business on economic growth in ASEAN and the European Union by comparing the result of each ASEAN and European Union. In this study it was found that in ASEAN, there are four indicators of doing business have significant impact to economic growth, while in the European Union five indicators have significant impact to economic growth.  

Introduction

2014 ◽  
Vol 05 (01) ◽  
pp. 1403001
Author(s):  
Rupa Chanda
Keyword(s):  
Service Sector ◽  
World Market ◽  
The Political ◽  
Special Issue ◽  
Comprehensive Overview ◽  
International Commerce ◽  
Cross Country ◽  
National Perspective ◽  
The Impact ◽  
Trade And Investment

This special issue of the Journal of International Commerce, Economics and Policy is dedicated to investigating the globalization of services and its implications for economies. The papers in this issue address various dimensions of the globalization of services, including economic linkages between countries through trade and investment flows, people mobility and outsourcing, protectionism in services, multilateral negotiations in services, the political economy of service sector reforms and the impact of services globalization on the domestic economy. The evidence on some of these dimensions is highlighted by presenting the specific case of the Indian economy where services have been an important growth driver and have facilitated the country's integration with the world market. Together, the papers in this issue aim to provide a comprehensive overview of the issues surrounding the participation of economies in services trade and investment flows from a cross-country, national and sub-national perspective.

scholarly journals Formality and investments: Evidence of Vietnamese SMEs

2021 ◽  
Vol 8 (3) ◽  
pp. 63-70
Author(s):  
Hong Mai Phan ◽  
◽  
Phan Thi Thu Hien ◽  
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Random Effects ◽  
Crucial Role ◽  
Two Stage ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Key Driver ◽  
The Impact

Business formality is considered a key driver in the development of the private sector in developing countries, which can contribute to enhancing the capacity and competitiveness of firms. The purpose of this paper is to investigate the impact of formality on investments of small and medium-sized enterprises (SMEs) in Vietnam. Different from previous work, we apply a two-stage method with random-effects Probit and Tobit regressions to control for endogeneity surrounding formality and investments. Results show that formality measured by having a tax code fosters all types of investments. However, formality proxied by having a full set of business registration documents decreases total and fixed investments but increases non-fixed investments. Our findings suggest that relaxing complex procedures, enhancing the knowledge of the owner, and improving the ease of doing business play a crucial role in the formalization of Vietnamese SMEs.

scholarly journals The Importance оf Small and Medium Enterprises in the Economic Development of Eastern Europe

2021 ◽  
Vol 17 ◽  
pp. 898-910
Author(s):  
Petrunenko Iaroslav ◽  
Iryna Khmarska ◽  
Tetiana Tkachenko ◽  
Hanna Koptieva ◽  
Veronika Komandrovska
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Eastern Europe ◽  
Small And Medium Enterprises ◽  
Size Class ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Medium Enterprises ◽  
The Impact ◽  
Micro Enterprises

An important engine of economic development of the country is the development of small and medium enterprises. At the same time, small and medium-sized businesses, being elements of the economic system, have a significant impact on the overall economic growth of the country. Thus, there is a mutual influence of economic units on the economy as a whole. The purpose of the article is to study the impact of small and medium-sized enterprises of small and medium-sized enterprises on the gross domestic product on the example of Eastern European countries. Methods: analysis, description, observation, comparison, generalization, induction, deduction, grouping, systematization, tabular and graphical representation. Results: The level of ease of doing business in Eastern Europe was analyzed according to the Ease of doing business ranking and it was found that the Czech Republic and Poland are among the 40 countries in Eastern Europe ranked 40th and 41st out of 190 possible. It is established that the subjects of small (including micro-enterprises) and medium-sized enterprises belonging to the non-financial sector, in the structure of all enterprises of the non-financial sector of each of the studied countries occupy more than 90%. It was found that a significant share in the structure of small and medium enterprises in Eastern Europe is occupied by micro-enterprises, while the share of medium-sized enterprises is the lowest. The results of regression analysis to determine the impact of small and medium enterprises on the economic growth of countries obtained by establishing the dependence of GDP on Turnover of the non-financial business economy by size class of employment. Revealed a high dependence of GDP Turnover of the non-financial business economy by size class of employment in all surveyed countries in Eastern Europe.

scholarly journals EVALUASI KEBIJAKAN PEMERIKSAAN FISIK BARANG PADA DIREKTORAT JENDERAL BEA DAN CUKAI

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Akhmad Firdiansyah ◽  
Ario Seno Nugroho
Keyword(s):  
Physical Examination ◽  
Good Governance ◽  
Performance Indicator ◽  
Secondary Data ◽  
Dwelling Time ◽  
Doing Business ◽  
Directorate General ◽  
Ease Of Doing Business ◽  
Logistics Performance Index

ABSTRACT: Customs clearance activities carried out by the Directorate General of Customs and Excise (DJBC) is closely related to the competitiveness of national economy indicators specifically ease of doing business, logistics performance index and dwelling time. Physical Examination of goods (bahandle) is a performance indicator of DJBC. Physical Examination was performed by the customs because of the number error and type of goods (red channel) or an error of the customs value and/or classification/tariff as well as random examination (green channel and priority channel). This research aims to analyze the effectiveness of the physical examination performed by DJBC. This research exploits descriptive qualitative analysis method using secondary data import (PIB) during 2015-2016. The results of the study showed that the error found (hitrate) was 5.9% meaning among 2.165.243 PIB checked, 127.775 documents were false. This proves that the physical examination conducted by DJBC is not efficient. Risk management is required through the evaluation of the determination of the variables in the physical examination not only because of the number and type of error, but also the customs value and/or classification/tariffs. Improved physical examination can result in the potential for efficient results and implement good governance.Keywords: physical examination, red line, efficientABSTRAK:Kegiatan pemeriksaan pabean (customs clearance) yang dilaksanakan oleh Direktorat Jenderal Bea dan Cukai (DJBC) berkaitan erat dengan daya saing perekonomian nasional dalam hal kemudahan melakukan bisnis, indeks performa logistik dan dwelling time. Pemeriksaan fisik barang (bahandle) merupakan indikator kinerja DJBC. Pemeriksaan fisik dilakukan terhadap pemberitahuan pabean karena kesalahan jumlah dan jenis barang (jalur merah) maupun kesalahan karena nilai pabean dan/atau klasifikasi/tarif serta pemeriksaan secara acak (jalur hijau dan jalur prioritas). Penelitian ini bertujuan menganalisa efektivitas kegiatan pemeriksaan fisik (bahandle) yang dilakukan oleh DJBC. Penelitian ini menggunakan metode analisa kualitatif deskriptif dengan menggunakan data sekunder importasi Pemberitahuan Impor Barang nasional (PIB) pada kurun waktu 2015-2016. Hasil penelitian menunjukkan bahwa besarnya kesalahan yang ditemukan (hitrate) adalah 5,9% yaitu artinya bahwa terhadap 2.165.243 PIB yang diperiksa, terdapat 127.775 dokumen yang salah. Hal ini membuktikan bahwa pemeriksaan fisik yang dilakukan oleh DJBC belum efisien. Diperlukan penataan manajemen yang baik melalui evaluasi penentuan variabel dalam pemeriksaan fisik dengan manajemen risiko yang obyektif dan terukur, bukan hanya karena kesalahan jumlah dan jenis saja, melainkan juga kesalahan karena nilai pabean dan/atau klasifikasi/tarif. Perbaikan tata kelola pemeriksaan fisik dapat memberikan potensi hasil yang efisien dan dapat mewujudkan pemerintahan yang baik (good governance).Kata Kunci: pemeriksaan fisik, jalur merah, efisien 

scholarly journals The Impact of Entrepreneurial Determinants on Ease of Doing Business in English-Speaking West African Countries (ESWACS)

2021 ◽  
Vol 04 (07) ◽  
Author(s):  
Poi, G. Uzomba ◽  
Keyword(s):  
Granger Causality ◽  
Sierra Leone ◽  
Impulse Response ◽  
West African ◽  
The Gambia ◽  
African Countries ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
English Speaking ◽  
The Impact

This study investigated the impact of entrepreneurial determinants on ease of doing business in the five English. Speaking West African Countries (ESWACs) of Nigeria, Ghana, Sierra Leone, Liberia and The Gambia. It used secondary data sourced from the OECD and the World Bank. The independent variables were the Entrepreneurial Determinants (ED) of regulatory framework peroxide by Small and Medium Enterprise Sale Tax (SSTR); access to finance proxied by both Interest Rate Spread (INTR) and Domestic Credit to Private Sector (DCPS). The dependent variable was the Ease of Doing Business Ranking (EDBR). Five research objective and five hypotheses based on the Keynesian, Monetary and Schumpeter theoretical inferences guided the study. The study used ex-post factor research design and descriptive statistical, correlation matrix, Panel-ARDL, Granger causality, and impulse response methods for the analyses. The results revealed that SSTR is positively and weakly correlated with EDBR, but has negative and weak correlation with INTR and DCPS. Long run relationship was found not to exist between SSTR, INTR and DCPS, and EDBR, but the dynamic short run ARDL regression reveals high levels of coefficient of determination. On country-specific analysis, the cross-sectional result showed SSTR, INTR and DCPS positively impacted on ease of doing business in Nigeria and Sierra Leone but had a negative impact in Ghana, Liberia and The Gambia. It was further revealed that zero Granger causality existed among SSTR, INTR, DCPS and EDBR; and mixed impulse responses were revealed from the impulse response result. It was also recommended that governments of ESWACs should ensure the continuous use of mixed expansionary policies to ensure that Entrepreneurial determinants positively impact the ease of doing business in the area.

Managing the Program to Promote Russia in the "Doing Business" Rankings

2021 ◽  
pp. 15-23
Author(s):  
Ol'ga Kazakova
Keyword(s):  
Regression Model ◽  
Program Transformation ◽  
Business Climate ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
The Impact

This work considers the program "Transformation of the Business Climate", one of the goals of which is the growth of Russia in the Doing Business rating. It is assumed that the rating indicators are unequal, and it is possible to single out the indicators, the impact of which most strongly affects the level of ease of doing business. For this purpose, a regression model has been built, on the basis of which the forecast of Russia's advancement in the ranking in the coming years is built. This work highlights the strengths and weaknesses of the Business Climate Transformation program and offers recommendations for promoting Russia in the Doing Business rating.

scholarly journals The Power of Ranking: The Ease of Doing Business Indicator and Global Regulatory Behavior

2019 ◽  
Vol 73 (03) ◽  
pp. 611-643 ◽  
Author(s):  
Rush Doshi ◽  
Judith G. Kelley ◽  
Beth A. Simmons
Keyword(s):  
World Bank ◽  
Domestic Politics ◽  
Performance Indicator ◽  
Investor Sentiment ◽  
Regulatory Reform ◽  
Business Climate ◽  
Doing Business ◽  
The World Bank ◽  
The World ◽  
Ease Of Doing Business

AbstractWe argue that the World Bank has successfully marshaled the Ease of Doing Business (EDB) Index to amass considerable influence over business regulations worldwide. The Ease of Doing is a global performance indicator (GPI), and GPIs—especially those that rate and rank states against one another—are intended to package information to influence the views of an audience important to the target, such as foreign investors or voters, thus generating pressures that induce a change in the target's behavior. The World Bank has succeeded in shaping the global regulatory environment even though the bank has no explicit mandate over regulatory policy and despite questions about EDB accuracy and required policy tradeoffs. We show that the EDB has a dominating market share among business climate indicators. We then use media analyses and observational data to show that EDB has motivated state regulatory shifts. States respond to being publicly ranked and some restructure bureaucracies accordingly. Next we explore plausible influence channels for the EDB ranking and use an experiment involving US portfolio managers to build on existing economics research and examine whether the rankings influence investor sentiment within the experiment. Using a case study of India's multiyear interagency effort to rise in the EDB rankings, as well as its decision to create subnational EDB rankings, we bring the strands of the argument together by showing how politicians see the ranking as affecting domestic politics, altering investor sentiment, and engaging bureaucratic reputation. Overall, a wide variety of evidence converges to illustrate the pressures through which the World Bank has used state rankings to achieve its vision of regulatory reform.

Studying ‘Make in India’ from the Lens of Labour Reforms

2017 ◽  
Vol 42 (1) ◽  
pp. 1-19
Author(s):  
Kinjal Shukla ◽  
Maitreyi Purohit ◽  
Shubhra P. Gaur
Keyword(s):  
Developing Economies ◽  
Manufacturing Sector ◽  
Harvard Business Review ◽  
Domestic Investment ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
The Government ◽  
Primary Focus ◽  
Key Aspects ◽  
The Impact

The contribution of the manufacturing sector in gross domestic product (GDP) has been a cause of concern, as India contributes only 16 per cent to the GDP in comparison to other rapidly developing economies, for example, the manufacturing sector of Thailand contributes 34 per cent to the GDP, China 32 per cent and South Korea 31 per cent. Currently, India stands at 134th position out of 189 economies under Doing Business Index. Its rank has also declined in the Global Manufacturing Index in comparison to the previous year. The Government of India in the year 2014 initiated a campaign titled Make in India to foster the growth of the manufacturing sector. In the initial phase of the campaign, the primary focus was on three key tactics namely reviving domestic investment, ensuring the ease of doing business and attracting foreign investors to invest in the manufacturing sector. The government later on realized that first there is a need to bring reforms in the decades old labour laws. This has urged the government to consider reforms in labour laws which will make Indian labour market more competitive in international market. The government has initiated these reforms by proposing certain amendments in the Factories Act 1948 and by including few provisions in the Labour Laws Amendment Act, 2011, and the Apprenticeship (Amendment) Act, 2014. The article attempts to analyze the impact of these reforms on success of Make in India campaign by studying the overall impact of these labour law reforms from employees and employers’ perspective and contribution of labour reforms in Make in India campaign by using the theory of structural change, fundamentals and growth given by Rodrik (2013b, Harvard Business Review). It also analyzes the impact of these reforms on two key aspects of the campaign, that is, focusing on job creation and skill enhancement.

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