By World Bank

This self sufficient overview of the Doing enterprise symptoms assesses the tools and tactics used to build the symptoms, their relevance to improvement results, and their usefulness to coverage makers and different stakeholders. It makes techniques for bettering the gathering and presentation of information and for larger readability in speaking what the symptoms can and can't catch.

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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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406). DB focuses on the idea that excessive regulation of private sector activity inhibits the transition from the informal to the formal economy. Although some research shows that “countries with heavier entry regulation have lower firm entry and lower growth . . there is very little evidence on the actual effects of business registration reform” (Bruhn 2007, p. 1). Recent research in Mexico finds that simplifying business registration procedures was associated with an increase in newly registered businesses, although the new business owners were formerly wage earners rather than unregistered business owners (Bruhn 2007).

Photo reproduced by permission of Gideon Mendel/Corbis. What Do the Indicators Measure? his chapter reviews key characteristics of the DB indicators as a group, and then focuses on issues that emerge from five indicators—starting a business, paying taxes, employing workers, enforcing contracts, and getting credit. T General Characteristics of the Indicators Is DB rules-based? 1 The evaluation team analyzed the questionnaires for the 2007 and 2008 DB reports to determine the share of questions that required responses based: • Solely on written laws or regulations • On a combination of written law and the informant’s experience • Solely on the informant’s judgment or experience.

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. Chapter 2 Evaluation Highlights • DB collects its data largely from lawyers and accountants deemed knowledgeable about a country’s laws and regulations. • The number of informants who fill in questionnaires on any topic in a country is small.

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