Ease of doing business

Description

This paper examines the macroeconomic impact of the World Bank’s Ease of Doing Business (EDB) ranking, which has gained increasing importance among policymakers, using simple yet robust cross-country regressions. The main findings are, first, that GDP per capita is negatively correlated with the EDB ranking. Second, average economic growth over a ten-year period is negatively related to initial per capita income. The analysis provides broad evidence linking these correlations to labor supply factors. Overall, the findings suggest that the EDB ranking has limited macroeconomic usefulness and relevance.

Publication Date

1-1-2017

Keywords

Ease of doing business rank, Hernando de Soto, GDP growth, Convergence

Conference

28th November, 2017, Institute of Excellence in Management Sciences (IEMS), Hubli

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