scholarly journals How Business is Done in the Developing World: Deals versus Rules

2015 ◽  
Vol 29 (3) ◽  
pp. 121-140 ◽  
Author(s):  
Mary Hallward-Driemeier ◽  
Lant Pritchett
Keyword(s):  
Developing World ◽  
Private Enterprise ◽  
Regulatory Compliance ◽  
Investment Climate ◽  
Firm Level ◽  
Doing Business ◽  
The World ◽  
Enterprise Surveys ◽  
Business Survey ◽  
Construction Permit

What happens in the developing world when stringent regulations characterizing the investment climate meet weak government willingness or capability to enforce those regulations? How is business actually done? The Doing Business project surveys experts concerning the legally required time and costs of regulatory compliance for various aspects of private enterprise—starting a firm, dealing with construction permits, trading across borders, paying taxes, getting credit, enforcing contracts, and so on—around the world. The World Bank's firm-level Enterprise Surveys around the world ask managers at a wide array of firms about their business, including questions about how long it took to go through various processes like obtaining an operating license or a construction permit, or bringing in imports. This paper compares the results of three broadly comparable indicators from the Doing Business and Enterprise Surveys. Overall, we find that the estimate of legally required time for firms to complete a certain legal and regulatory process provided by the Doing Business survey does not summarize even modestly well the experience of firms as reported by the Enterprise Surveys. When strict de jure regulation and high rates of taxation meet weak governmental capabilities for implementation and enforcement, we argue that researchers and policymakers should stop thinking about regulations as creating “rules” to be followed, but rather as creating a space in which “deals” of various kinds are possible.

scholarly journals INVESTMENT SECURITY IN THE SYSTEM OF ECONOMIC SECURITY OF THE STATE

2021 ◽  
Author(s):  
Nataliia Sytnyk ◽  
Veronika Ishchenko
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Security ◽  
The State ◽  
Fixed Capital ◽  
Investment Climate ◽  
Important Place ◽  
Doing Business ◽  
The World ◽  
The Government

In modern conditions of functioning of the market economy, in the era of development of globalization and globalization processes, the prevalence of international relations, the spread of various forms of international capital movement, in particular foreign direct investment, an important place is occupied by investment activities and policies implemented by the state within the framework of the latter. It is difficult to overestimate the importance and role of investment, because world experience shows that the effective development of business entities, and therefore the country's economy as a whole, cannot be imagined without making investments. Therefore, the government of almost any country in the world is focused on creating a favorable investment climate. The article defines the theoretical foundations of investment security of the state: the essence of the concept is outlined, the principles on which investment security is based, its place and role in the state's economic security system are justified. Qualitative and quantitative criteria for a comprehensive assessment of the state's investment security are presented. The calculation and analysis of the main indicators – quantitative criteria of investment security: gross accumulation of fixed capital; the degree of accumulation of fixed capital; the ratio of the cost of newly introduced fixed assets to the volume of capital investments is carried out; the ratio of net growth of foreign direct investment to GDP; the size of the Ukrainian economy as a percentage of global GDP. The dynamics of the total volume of foreign direct investment in the Ukrainian economy in the context of world countries is analyzed. The main investor countries that ensure the receipt of the largest volumes of investment flows to the Ukrainian economy are identified. Ukraine's place in the World Bank's “Doing Business” rating over the past ten years has been demonstrated. The positive dynamics regarding Ukraine's place in the World Bank's “Doing Business” rating and the main factors that influenced such positive changes were noted. The investment climate of the state is assessed and possible measures are proposed to improve the mechanism of managing the state's investment security.

Evaluation of Firm Performances in Emerging Markets

2020 ◽  
pp. 329-354
Author(s):  
Seda Ekmen Özçelik
Keyword(s):  
Emerging Markets ◽  
Total Factor Productivity ◽  
Labor Productivity ◽  
Value Added ◽  
Factor Productivity ◽  
Firm Level ◽  
Average Value ◽  
The World Bank ◽  
The World ◽  
Enterprise Surveys

This chapter provides basic understanding of firm performance in emerging markets by focusing on labor productivity and total factor productivity. In the study, labor productivity is measured in terms of average value added per worker. Total factor productivity is obtained from estimations of Cobb-Douglas production function where value added is a function of labor and capital. Data is obtained from the firm-level Enterprise Surveys by the World Bank. According to the results, differences in average labor productivities are significant among the sectors within each emerging region. Also, the value of factor elasticities changes across sectors as well as across regions. Moreover, the elasticity of capital is lower than the elasticity of labor for all sectors in regions. It implies that labor plays a more significant role and the firms are operating in a more labor-intensive production process in emerging markets.

scholarly journals Efisiensi Administrasi Pajak sebagai Strategi Peningkatan Kemudahan Berusaha di Indonesia

2021 ◽  
Vol 5 (1) ◽  
pp. 74-90
Author(s):  
Muhammad Wiryo Susilo
Keyword(s):  
World Bank ◽  
Qualitative Approach ◽  
Tax Administration ◽  
Investment Climate ◽  
Payment Methods ◽  
Doing Business ◽  
The World Bank ◽  
Digital Services ◽  
The World ◽  
Ease Of Doing Business

The COVID-19 pandemic threatens the world's investment climate, including Indonesia. Indonesia is required to increase its business ease ranking so that it can compete in attracting investment. Tax administration has an important role as one of the factors determining the ease of doing business according to the World Bank. The ease of paying taxes in Indonesia has continued to increase from time to time but is still lagging behind other countries. This study aims to analyze the efficiency of tax administration in relation to the ease of doing business in Indonesia; enrich the literature on tax administration efficiency policies; and provide recommendations for improvement of ease of doing business through efficiency of tax administration based on tax administration theory and relevant concepts of ease of doing business. This research uses a descriptive qualitative approach. The results showed that the ease of paying taxes in Indonesia is still low and there are three indicators that need to be improved, namely payment, time and filling index. The author recommends simplifying tax payment types, utilizing cashless payment methods through digital services and using Artificial Intelligence in making tax decisions.

scholarly journals The Effects of Power Outages on the Performance of Manufacturing Firms in the MENA Region

2020 ◽  
Vol 16 (3) ◽  
Author(s):  
Ali Fakih ◽  
Pascal Ghazalian ◽  
Nancy Ghazzawi
Keyword(s):  
Firm Performance ◽  
North Africa ◽  
Manufacturing Firms ◽  
Power Outages ◽  
Mena Region ◽  
Firm Level ◽  
Perceived Severity ◽  
The World ◽  
Enterprise Surveys ◽  
Economic Regions

AbstractPower supply in developing countries is often characterized by unreliability and inefficiency, resulting in disruption costs for operating firms. The extents of power outages in the Middle East and North Africa (MENA) region are more significant compared to other geo-economic regions. This paper examines the effects of power outages on the performance of manufacturing firms in the MENA region using a firm-level dataset derived from the World Bank’s Enterprise Surveys (WBES) database. Firm performance is represented by sales, employment, and productivity growth rates. The extents of power outages are depicted by objective measures characterizing durations and frequencies of power outages, and by perception-based measures reflecting firms’ perceived severity of power outages. The results emphasize the adverse consequences of power outages for the performance of manufacturing firms in the MENA region. They also suggest that different patterns of power outages have varying implications for firm performance, and that the effects of power outages exhibit variations with firm size.

ANALYSIS OF FOREIGN INVESTMENTS IN THE ECONOMY OF UKRAINE: CURRENT SITUATION AND DIRECTIONS OF OPTIMIZATION

2017 ◽  
Author(s):  
Petro Viblyi ◽  
◽  
Solomiia Papirnyk ◽  
Keyword(s):  
Structural Changes ◽  
Developed Countries ◽  
Special Role ◽  
Investment Climate ◽  
Economic Space ◽  
Doing Business ◽  
The World ◽  
Current Economic Situation ◽  
World Economic ◽  
The Impact

The article provides a detailed analysis of foreign investment in the economy of Ukraine, in particular in terms of types recommended by the methodology of the balance of payments - direct, portfolio and other investments. The main characteristics of each type of investment are highlighted and the most desirable form is highlighted given the current economic situation in the country. The dynamics of the total volume of investments of non-residents in Ukraine with an emphasis on the main crisis periods in both the world and domestic economy is studied. Particular attention is paid to the structure of incoming investment flows on the basis of the country of origin and the ratio of investments from highly developed countries and the so-called offshore zones. The most attractive sectors of the national economy for non-residents are named, and the impact of the distribution of total investments by types of economic activity on Ukraine's position in the world economic space is analyzed. A special role in this study is given to the analysis of Ukraine's position in the ranking of "Doing Business", which is compiled by the World Bank and is a kind of benchmark for investors. The main achievements of Ukraine on the way to the growth of its investment attractiveness are analyzed and the still unresolved problems are highlighted. The main directions for further structural changes in the context of optimizing the investment climate in Ukraine are presented.

scholarly journals Predation, Protection, and Productivity: A Firm-Level Perspective

2018 ◽  
Vol 10 (2) ◽  
pp. 184-221 ◽  
Author(s):  
Timothy Besley ◽  
Hannes Mueller
Keyword(s):  
World Bank ◽  
Firm Level ◽  
Profound Impact ◽  
Output Loss ◽  
The World Bank ◽  
The World ◽  
Output Losses ◽  
Micro Level ◽  
Enterprise Surveys ◽  
State Protection

This paper studies the consequences of predation when firms deploy guard labor as a means of protecting themselves. We build a simple model and combine it with data for 144 countries from the World Bank enterprise surveys, which ask about firm-level experiences with predation and spending on protection. We use the model to estimate the output loss caused by the misallocation of labor across firms and from production to protection. The loss due to protection effort is substantial and patterns of state protection at the micro level can have a profound impact on aggregate output losses. Various extensions are discussed. (JEL D22, D24, J24, K40, L84, O17)

WAYS TOWARDS ADVANCED AUTOMATIC MEASURES TO PREVENT VAT EVASION

2018 ◽  
Vol 1 (11) ◽  
pp. 102-118
Author(s):  
Andrew Vadimovich Grona
Keyword(s):  
Accounting System ◽  
Investment Climate ◽  
Administration System ◽  
Doing Business ◽  
Key Points ◽  
Ministry Of Finance ◽  
Finance Department ◽  
Tax Payers ◽  
Electronic Administration ◽  
New Criteria

This paper intends to bring a view on possible measures, which the Cabinet of Ministers and Finance Department of Ukraine are authorized to implement. These measures concern introducing new criteria for evaluating the level of risks, sufficient for stopping a registration of tax invoices/adjustment calculations, depending on a kind of the stated goods’ issue. Both the criteria and implementation of those are based on the information, received from an au- tomated VAT payers’ inventory accounting system, necessary for creationas a component of VAT electronic administration system. The paper brings a view on measures, intended to automate a processof reviewing tax payers’ written expla- nations by the SFS committee, established in accord to FDU’s order # 566 on 13.06.2017. In addition, some automatic measures to prevent realizing the “twist- ing” operations have been proposed in the paper. It was noted that the procedure for stopping the registration of risky tax invoices was introduced as a means of automatically preventing such a widespread VAT avoidance scheme as a “twist” for all goods, and not just for fuel. In this article, under the risky tax billing/ adjustment calculations, it is proposed to understand such tax invoices/adjust- ments calculations that satisfy the approved criteria of the Ministry of Finance to assess the degree of risk sufficient to stop their registration. It is noted that the principle of indiscretion has already been established in Ukraine. It is estab- lished prematurely, since it is not yet backed up by effective automatic measures to prevent VAT deviations. The real implementation of this principle is one of the key points in improving the investment climate and implementing economic re- forms in Ukraine. It will sharply increase the level of freedom of doing business in Ukraine, will open the way for an automatic VAT refund procedure and deprive enterprises of unreasonable checks that are carried out in connection with the detection of tax breaches by their counterparties (and, more often, counteragents of their counterparties).

INVESTMENT ACTIVITY AS ONE OF THE FACTORS OF ECONOMY DEVELOPMENT

2019 ◽  
pp. 25-31
Author(s):  
A.V. Korchemnaya
Keyword(s):  
Strategic Planning ◽  
Public Administration ◽  
Russian Federation ◽  
World Market ◽  
Planning System ◽  
Investment Climate ◽  
Investment Activity ◽  
System A ◽  
The World ◽  
The Russian Federation

Competitiveness of Russia economy under modern conditions demands systemacy of public administration. As a result of creation of national strategic planning system a number of govern-ment programs aimed at the economy development of the Russian Federation and perspective en-trance of the country to the world market is carried out. One of the main tasks of the economy de-velopment is creation of favorable investment climate in the country, investment activity, attraction of investments into the economy of the country’s regions.

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