Economic Policy

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This self reliant evaluate of the Doing company symptoms assesses the equipment and procedures used to build the symptoms, their relevance to improvement results, and their usefulness to coverage makers and different stakeholders. It makes thoughts for bettering the gathering and presentation of information and for better readability in speaking what the symptoms can and can't trap.

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Extra resources for Doing Business: Independent Evaluation: Taking the Measure of the World Bank/IFC Doing Business Indicators

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The DB exercise reflects these inherent tradeoffs. As a cross-country comparison, DB is not intended to, and cannot, capture country nuances and nonlinear relationships. 16 Seven of DB’s 10 indicators presume that reducing regulation is equally desirable whether a country starts with a little or a lot of regulation. While these limitations do not invalidate the exercise, they underscore the need to use the DB indicators cautiously and in conjunction with complementary tools, such as Investment Climate Assessments, when measuring a country’s investment climate or related measures of development effectiveness.

To the extent that DB collects factual information, as distinct from opinion or perception, it arguably does not need a large number of informants to lessen the source of error, as do perception or opinion surveys. But, as will be noted in chapter 3, not all of DB’s information is purely factual. The time and cost subindicators, for instance, require informants to make estimates based on their experience. Increasing the number of informants would reduce both the risk of erroneous factual information from a single informant and the errors inherent in questions requiring informants’ judgments.

5 D O I N G B U S I N E S S : A N I N D E P E N D E N T E VA L U AT I O N tors for economic performance and quality of public administration in the same direction (based on Altenburg and von Drachenfels 2006). Recent research has begun to test the links between the DB indicators and economic outcomes, although this research has been constrained by DB’s short time series. Djankov, McLiesh, Ramalho, and Shleifer (2008) looked at reforms in getting credit, and found that credit rises after improvements in creditor rights and information.

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