Are Corruption and Ease of Doing Business Correlated? An Analysis of 172 Nations

Mongay, Jorge; Filipescu, Diana A.

doi:10.1057/9781137007742.0009

Cited by 2 publications

(6 citation statements)

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“…Bayraktar (2013) also found that ease of doing business tends to attract more FDI in developing countries. Bonga and Mahuni (2018) found a significant positive impact reduction of corruption, trading across borders, getting credit, registration of property, dealing with construction permits, and starting a business on the bloc's economic growth, with resolving insolvency and investor protection of concern. It also demonstrated that property registration, starting a business, and corruption all had a significant impact on member states' economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Ease of doing business and investment among West African countries

Ijirshar,

Nomkuha,

Bura

et al. 2023

African Development Review

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This study assessed the link between ease of doing business (EBD) and investment among 11 selected countries in West Africa covering 2006-2020. The study used the fixed-effects estimator, the random-effects estimator, the augmented mean-group method, and the Half-Panel Jackknife Wald-type test.The study found a bidirectional relationship between the EBD and foreign direct investment (FDI) and a unidirectional relationship running from EBD to domestic investment. The findings further revealed that the EBD and national income have a strong influence in determining the level of domestic investment and FDI inflows, and that some indicators of EBD, such as the procedure for starting a business, access to credit facilities, tax, and security threats, discourage domestic investment and FDI inflows, in contrast to the influence of obtaining electricity and national income on investment. The study suggests that West African governments reduce taxes, ease the procedures and costs of starting a business and dealing with construction permits, and increase the availability of credit facilities at lower interest rates to promote investment in the region.domestic investment, ease of doing business, foreign direct investment, investment, West Africa | INTRODUCTIONSeveral economies rely on their level of investment to achieve economic and developmental goals. As explained by Keynes, national income rises when investment increases (Ono, 2011). This means that investment determines the growth and development of developing nations. It also helps in the transfer of technology and skills that accelerate the growth process in developing countries (Ho & Rashid, 2011). A higher level of investment also creates jobs and generates income that is spent and reinvested. Developing and underdeveloped economies in their developmental quest and process are becoming increasingly conscious of the fact that investment is a major stimulus to economic growth given the inadequacy of financial resources, technology, and skills. According to Ijirshar et al. (2019), investment improves the standard of living of citizens and drives economic growth. It is one of the major components in aggregate income analysis (Kukaj & Ahmeti, 2016). Anyanwu ( 2006) also shows the relevance of investment as an engine of economic growth for developing economies.

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Section: Literature Reviewmentioning

confidence: 99%

Ease of doing business and investment among West African countries

Ijirshar,

Nomkuha,

Bura

et al. 2023

African Development Review

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“…The concept of ease of doing business describes the quantity of resources an enterprise has to expend in dealing with the government bureaucracy [2]. It refers to the lack of negative factors that hinder business establishment and growth so that scarce resources can be deployed to productive use [21]. It includes lower degrees of government intervention in business registration processes such as faster processing, less documentation, or less regulatory requirements [2,22].…”

Section: Business Friendlinessmentioning

confidence: 99%

“…While most studies focus on the positive aspects of friendly business environments, scholars have recently begun to focus on the negative aspects of business friendliness. They find that when business friendliness abets public corruption and private rent-seeking, enterprise risk decisions [21] and innovation [20] are negatively affected. Although nascent, this research stream informs our formulation of the research question.…”

Section: Business Friendlinessmentioning

confidence: 99%

“…In China, business friendliness is simply a measure of the degree to which local governments competed for inbound investment capital and business establishment into their regions. As such, a more business-friendly province is said to have smaller government [2], fewer administrative barriers [21][22][23][24], broader access to financial capital [26], more developed factor market, and better infrastructure [65]. Factor markets and infrastructure development tended to vary more across the provinces than institutional development since local governments, with few exceptions, took their cue from the central government [65].…”

Section: Hypothesesmentioning

confidence: 99%

“…This is often the case when public officials are involved in private economic transactions (setting aside the legal construct of imminent domain in which the state is a counterparty in the transaction). Researchers have suggested that when business friendliness is associated with corruption, rent seeking, and crime, it is often the case that legal enforcement is weak [3,20,21]. Strong formal institutions are necessary for countering bad actors when informal institutions cannot function as the brakes to moral hazard.…”

Section: Hypothesis 1bmentioning

confidence: 99%

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Business Friendliness: A Double-Edged Sword

Phan

Sun

2021

Sustainability

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In this paper, we test the hypothesis that business-friendly local-government policies combined with weak legal institutions lead to lower economic welfare in the form of greater fraud activity. Using data of almost 3000 failed peer-to-peer (P2P) lending platforms in China, labeled as “runaways”, we find that they are more prevalent in provinces with business-friendly policies with weak law-enforcement regimes.

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Are Corruption and Ease of Doing Business Correlated? An Analysis of 172 Nations

Cited by 2 publications

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Ease of doing business and investment among West African countries

Ease of doing business and investment among West African countries

Business Friendliness: A Double-Edged Sword

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