A new index to measure ease of doing business at the sub-national level
| Autor: | Mulya Amri, Nurina Merdikawati, Khee Giap Tan |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Cultural Studies
Organizational Behavior and Human Resource Management Government 050208 finance Index (economics) Sociology and Political Science Cost effectiveness Strategy and Management media_common.quotation_subject 05 social sciences Investment (macroeconomics) Competition (economics) 0502 economics and business Profitability index Psychological resilience Business 050207 economics Business and International Management Explanatory power Industrial organization media_common |
| Zdroj: | Cross Cultural & Strategic Management. 25:515-537 |
| ISSN: | 2059-5794 |
| Popis: | Purpose The purpose of this paper is to propose a novel framework to measure ease of doing business (EDB) that undertakes a holistic approach incorporating three distinct environments: attractiveness to investors, business friendliness, and competitive policies (ABC). This is offered as an alternative to existing popular indicators of doing business (DB), allowing for better approximation of investment and economic growth at the sub-national level. Design/methodology/approach The proposed “EDB Index ABC” aggregates 74 indicators into five sub-environments, three environments, and ultimately into the overall EDB Index ABC. Values are standardised using the standardised score method. The framework is applied to 33 Indonesian provinces using a combination of primary data from surveying the business community and government departments as well as secondary data from formal government statistics. Findings The findings suggest a positive association between the proposed EDB Index ABC and competitiveness as well as investments into Indonesian provinces. In terms of explanatory power, attractiveness to investors and business friendliness seem to be stronger and more consistent, while the role of competitive policies is more ambiguous. Originality/value This research departs significantly from conventional approaches to the study of DB that tend to overwhelmingly focus on formal regulatory aspects by including macroeconomic factors such as market potential and infrastructure resilience as well as micro-level variables such as profitability and cost effectiveness, and the role of government in managing competition. Responding to calls for a bottom-up approach in understanding the EDB, the EDB Index ABC is applied to 33 Indonesian provinces. |
| Databáze: | OpenAIRE |
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