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Easy to do business - Or is it?

Olin, Linus LU (2017) NEKH01 20171
Department of Economics
Abstract
The Ease of Doing Business index, published by the World Bank, ranks countries by how easy it is to do business in them, with the goal of encouraging reforms favoring firms and economic prosperity. However, it is not guaranteed that the index is properly constructed to measure what it aims to measure, and the placement of certain countries on the index, as well as the results from a number of previous studies, indicate that there may be flaws in its construction.

This study investigates both whether changes in the placement on the index correlates with economic growth, and whether the inclusion of corruption levels as an additional variable measured in it would strengthen the correlation. The study uses regression analysis based on... (More)
The Ease of Doing Business index, published by the World Bank, ranks countries by how easy it is to do business in them, with the goal of encouraging reforms favoring firms and economic prosperity. However, it is not guaranteed that the index is properly constructed to measure what it aims to measure, and the placement of certain countries on the index, as well as the results from a number of previous studies, indicate that there may be flaws in its construction.

This study investigates both whether changes in the placement on the index correlates with economic growth, and whether the inclusion of corruption levels as an additional variable measured in it would strengthen the correlation. The study uses regression analysis based on panel data, where the correlation between Ease of Doing Business rankings and growth rates in GNI per capita are studied with and without corruption levels as explanatory variables.

The results indicate that placements in the Ease of Doing Business index do not significantly correlate with GNI per capita growth. However, the inclusion of corruption levels do not lead to any clear improvements. (Less)
Please use this url to cite or link to this publication:
author
Olin, Linus LU
supervisor
organization
alternative title
En analys av Ease of Doing Business indexets korrelation med ekonomisk tillväxt, med och utan hänsyn till korruptionsnivåer i olika länder
course
NEKH01 20171
year
type
M2 - Bachelor Degree
subject
keywords
EDBI, Corruption, Institutions, Growth
language
Swedish
id
8911974
date added to LUP
2017-07-11 11:13:52
date last changed
2017-07-11 11:13:52
@misc{8911974,
  abstract     = {The Ease of Doing Business index, published by the World Bank, ranks countries by how easy it is to do business in them, with the goal of encouraging reforms favoring firms and economic prosperity. However, it is not guaranteed that the index is properly constructed to measure what it aims to measure, and the placement of certain countries on the index, as well as the results from a number of previous studies, indicate that there may be flaws in its construction. 

This study investigates both whether changes in the placement on the index correlates with economic growth, and whether the inclusion of corruption levels as an additional variable measured in it would strengthen the correlation. The study uses regression analysis based on panel data, where the correlation between Ease of Doing Business rankings and growth rates in GNI per capita are studied with and without corruption levels as explanatory variables. 

The results indicate that placements in the Ease of Doing Business index do not significantly correlate with GNI per capita growth. However, the inclusion of corruption levels do not lead to any clear improvements.},
  author       = {Olin, Linus},
  keyword      = {EDBI,Corruption,Institutions,Growth},
  language     = {swe},
  note         = {Student Paper},
  title        = {Easy to do business - Or is it?},
  year         = {2017},
}