The Effects of Business Environments on Development : Surveying New Firm-Level Evidence

In the past decade, the World Bank has promoted improving business environments as a key strategy for development, which has resulted in a significant amount of investment in collecting firm-level investment climate surveys across countries. What lessons have emerged from the papers using these new data? The key finding is that the effects of business environments are heterogeneous and depend crucially on industry, initial conditions, and complementary institutions. Some elements of the business environment, such as labor flexibility, low entry and exit barriers, and a reasonable protection from the "grabbing hands" of the government, seem to matter a great deal for most economies. Other elements, such as infrastructure and contracting institutions (courts and access to finance), hinge on their initial status and the size of the market.

Bibliographic Details

Main Author:	Xu, Lixin Colin
Language:	English
Published:	2010-08-01
Subjects:	ACCESS TO BANK, ACCESS TO EXTERNAL FINANCE, ACCESS TO FINANCE, ACCOUNTING, ADVERSE DEMAND, ADVERSE EFFECTS, AGENCY COSTS, ANTI-SWEATSHOP CAMPAIGN, AUCTION, AVERAGE PRODUCTIVITY, BANK OFFICIALS, BANK POLICY, BANKING SECTOR, BANKRUPTCIES, BANKRUPTCY, BANKRUPTCY LAWS, BANKRUPTCY PROCEDURE, BARRIER, BRIBE, BRIBES, BRIBING, BUDGET CONSTRAINT, BUSINESS ENVIRONMENT, BUSINESS ENVIRONMENTS, CAPITAL INVESTMENT, CAPITAL MARKET, CAPITAL OWNERS, CHECKS, CODES OF CONDUCT, COLLATERAL, COLLATERAL REQUIREMENTS, COMPUTER TECHNOLOGY, CONTRACT ENFORCEMENT, CORPORATE GOVERNANCE, CORPORATE TAX, CORPORATE TAX RATE, CORPORATE TAX RATES, CORPORATE TAXES, CORRUPTION, COUNTRY DUMMIES, CREDITOR, CREDITORS, DEREGULATION, DEREGULATIONS, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DISMISSAL, DISPUTE RESOLUTIONS, ECONOMETRICS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC CIRCUMSTANCES, ECONOMIC CONSEQUENCES, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC REFORM, ECONOMIC REFORMS, ECONOMICS, EFFICIENCY OF LABOR, EMERGING ECONOMIES, EMPIRICAL STUDIES, EMPLOYER, EMPLOYMENT GROWTH, ENFORCEMENTS, ENTREPRENEUR, ENTREPRENEURIAL ACTIVITIES, ENTREPRENEURS, ENTRY BARRIERS, ENVIRONMENTS, EXCHANGE RATE, EXCLUSION, EXPORTERS, EXPOSURE, EXPROPRIATION, EXPROPRIATIONS, EXTERNAL FINANCE, FARMERS, FINANCIAL DEVELOPMENT, FINANCIAL MANAGEMENT, FINANCIAL SECTOR, FINANCIAL SECTORS, FIRM GROWTH, FIRM PERFORMANCE, FIRM PERFORMANCES, FIXED ASSETS, FOOD POLICY RESEARCH, FORECLOSURES, FOREIGN BANK, FOREIGN BANK ENTRY, FOREIGN BANKS, FOREIGN COMPETITION, FOREIGN DIRECT INVESTMENT, FOREIGN FIRMS, FOREIGN OWNERSHIP, GLOBALIZATION, GOVERNANCE INDICATORS, GOVERNMENT POLICIES, GOVERNMENT REGULATION, GROSS DOMESTIC PRODUCT, GROWTH RATE, GROWTH RATES, HOLDING, HUMAN CAPITAL, INCOME, INCOME INEQUALITY, INCOME LEVEL, INCOME LEVELS, INCOME TAX, INFLATION, INFORMAL CREDIT, INFORMATION DISCLOSURE, INFRASTRUCTURE INVESTMENT, INNOVATION, INNOVATIONS, INPUT PRICES, INSTRUMENT, INTANGIBLE, INTANGIBLE ASSETS, INTELLECTUAL PROPERTY, INTERNATIONAL BANK, INVESTMENT CLIMATE, INVESTMENT CLIMATES, INVESTMENT DECISIONS, INVESTOR PROTECTION, JOB CREATION, JOB CREATIONS, JUDICIAL SYSTEM, LABOR ADJUSTMENT COSTS, LABOR ALLOCATION, LABOR COSTS, LABOR DEMAND, LABOR ECONOMICS, LABOR FORCE, LABOR MARKET, LABOR MARKET FLEXIBILITY, LABOR PRODUCTIVITY, LABOR REGULATIONS, LABOR TURNOVER, LAW ENFORCEMENT, LEGAL CONSTRAINTS, LEGAL RIGHTS, LEGAL SYSTEM, LEGAL SYSTEMS, LIBERALIZATION, LIMITED LIABILITY, LIMITED LIABILITY CORPORATION, LIQUIDATION, LOAN, LOAN AMOUNTS, LOCAL BANKS, LOCAL BUSINESS, LOCAL BUSINESSES, LOCAL ECONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MANUFACTURING INDUSTRIES, MARGINAL REVENUE, MARKET COMPETITION, MARKET DISCIPLINE, MARKET REFORMS, MICRO DATA, MINIMUM WAGE, MINIMUM WAGES, MONOPOLIES, MONOPOLY, MULTINATIONAL, OUTPUT, OUTPUTS, OVERDRAFT, POLICY MAKERS, POLITICAL ECONOMY, POLITICAL INSTITUTIONS, POLITICAL STABILITY, POLLUTION, PRIVATE PARTIES, PRIVATE PROPERTY, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRODUCERS, PRODUCTION COSTS, PRODUCTIVE INVESTMENT, PRODUCTIVITY GROWTH, PROFIT MARGINS, PROPERTY RIGHTS, PROPERTY RIGHTS PROTECTION, PROPRIETORSHIPS, PUBLIC ENFORCEMENT, PUBLIC GOODS, RED TAPE, REGULATORS, REINVESTMENT, REINVESTMENT RATE, REINVESTMENT RATES, REPUTATION, RETAINED EARNINGS, RETURN, RETURNS, RULE OF LAW, SAFETY, SALES GROWTH, SEVERANCE PAY, SHAREHOLDERS, SINGLE MARKET, SMALL BUSINESS, SOCIAL CAPITAL, SOCIAL COST, SOCIAL NETWORK, SUPPLIERS, SUSTAINABLE GROWTH, TAX, TAX BURDEN, TAX BURDENS, TAX RATES, TELECOMMUNICATIONS, TRADE CREDIT, TRADE UNIONS, TRANSACTION, TRANSACTION COSTS, TRANSITION ECONOMIES, UNEMPLOYED, UNEMPLOYMENT, VILLAGE, WAGES, WELFARE EFFECTS, WORKING CONDITIONS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100824110330 https://hdl.handle.net/10986/3886
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