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Deals versus Rules : Policy Implementation Uncertainty and Why Firms Hate It

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dc.contributor.authorKhun-Jush, Gita
dc.contributor.authorHallward-Driemeier, Mary
dc.contributor.authorPritchett, Lant
dc.date.accessioned2012-03-19T18:40:10Z
dc.date.available2012-03-19T18:40:10Z
dc.date.issued2010-05-01
dc.description.abstractFirms in Africa report "regulatory and economic policy uncertainty" as a top constraint to their growth. This paper argues that often firms in Africa do not cope with policy rules, rather they face deals: firm-specific policy actions that can be influenced by firm actions (such as bribes) and characteristics (such as political connections). Using Enterprise Survey data, the paper demonstrates huge variability in reported policy actions across firms notionally facing the same policy. The within-country dispersion in firm-specific policy actions is larger than the cross-national differences in average policy. The analysis shows that variability in this policy implementation uncertainty within location-sector-size cells is correlated with firm growth rates. These measures of implementation variability are more strongly related to lower firm employment growth than are measures of "average" policy action. The paper shows that the de jure measures such as Doing Business indicators are virtually uncorrelated with ex-post firm-level responses, further evidence that deals rather than rules prevail in Africa. Strikingly, the gap between de jure and de facto conditions grows with the formal regulatory burden. The evidence also shows more burdensome processes open up more space for making deals; firms may not incur the official costs of compliance, but they still pay to avoid them. Finally, measures of institutional capacity and better governance are closely associated with perceived consistency in implementation.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100526160752
dc.identifier.doi10.1596/1813-9450-5321
dc.identifier.urihttps://hdl.handle.net/10986/3806
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5321
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSETS
dc.subjectBRANCH
dc.subjectBRIBE
dc.subjectBRIBERY
dc.subjectBRIBES
dc.subjectBUSINESS COMMUNITY
dc.subjectBUSINESS ENTERPRISE
dc.subjectBUSINESSMAN
dc.subjectCAPITAL FORMATION
dc.subjectCIVIL LAW
dc.subjectCLIMATE
dc.subjectCOLLUSION
dc.subjectCOMPETITORS
dc.subjectCOMPLAINTS
dc.subjectCONGLOMERATES
dc.subjectCORRUPTION
dc.subjectCRIME
dc.subjectDEBT
dc.subjectDOMINANT FIRMS
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC GROWTH RATES
dc.subjectECONOMIC POLICY
dc.subjectECONOMISTS
dc.subjectEMPLOYMENT
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURS
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTAL REGULATION
dc.subjectENVIRONMENTS
dc.subjectEQUILIBRIUM
dc.subjectEXCHANGE RATE
dc.subjectEXPANSION
dc.subjectEXTERNALITIES
dc.subjectEXTORTION
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL SECTOR
dc.subjectFIRMS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNMENT EFFECTIVENESS
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGOVERNMENT POLICY
dc.subjectHUMAN CAPITAL
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINDUSTRIAL ENTERPRISES
dc.subjectINVESTIGATIONS
dc.subjectIRREVERSIBILITY
dc.subjectJOB GROWTH
dc.subjectJUDICIAL SYSTEM
dc.subjectJUSTICE
dc.subjectLAND USE
dc.subjectLAWS
dc.subjectLAWYER
dc.subjectLAWYERS
dc.subjectLICENSING
dc.subjectLOAN
dc.subjectLOBBYING
dc.subjectLOCAL GOVERNMENT
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COSTS
dc.subjectMARKET COMPETITION
dc.subjectMARKET FAILURES
dc.subjectMICRO-CREDIT
dc.subjectMULTI-NATIONAL COMPANIES
dc.subjectPARTY
dc.subjectPENALTIES
dc.subjectPOLICE
dc.subjectPOLICY ACTION
dc.subjectPOLICY ACTIONS
dc.subjectPOLICY DOMAIN
dc.subjectPOLICY DOMAINS
dc.subjectPOLICY ENVIRONMENT
dc.subjectPOLICY FORMULATION
dc.subjectPOLICY FRAMEWORK
dc.subjectPOLICY GOALS
dc.subjectPOLICY IMPLEMENTATION
dc.subjectPOLICY MAKING
dc.subjectPOLICY OBSTACLES
dc.subjectPOLICY OUTCOMES
dc.subjectPOLICY PROCESS
dc.subjectPOLICY REFORM
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICIAN
dc.subjectPOLITICIANS
dc.subjectPREFERENTIAL
dc.subjectPREFERENTIAL ACCESS
dc.subjectPRIVATE COMPANY
dc.subjectPROBABILITY DISTRIBUTIONS
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC POLICY
dc.subjectREGULATORY BURDEN
dc.subjectREGULATORY BURDENS
dc.subjectREGULATORY ENVIRONMENT
dc.subjectREGULATORY REQUIREMENTS
dc.subjectRULE OF LAW
dc.subjectSMALL BUSINESS
dc.subjectSMALL FIRMS
dc.subjectSME
dc.subjectSME FINANCING
dc.subjectSTORE
dc.subjectTAX RATES
dc.subjectTAX REVENUE
dc.subjectWILLINGNESS TO PAY
dc.titleDeals versus Rules : Policy Implementation Uncertainty and Why Firms Hate Iten
dspace.entity.typePublication
okr.crossref.titleDeals Versus Rules : Policy Implementation Uncertainty And Why Firms Hate It
okr.date.doiregistration2025-04-10T11:49:46.201643Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100526160752
okr.guid781511468326968595
okr.identifier.doi10.1596/1813-9450-5321
okr.identifier.externaldocumentum000158349_20100526160752
okr.identifier.internaldocumentum12327666
okr.identifier.reportWPS5321
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/05/26/000158349_20100526160752/Rendered/PDF/WPS5321.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorIndustry and trade :: General industry and trade sector
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication67f85769-f3f3-56bb-8609-d63125a35e32
relation.isAuthorOfPublication.latestForDiscovery67f85769-f3f3-56bb-8609-d63125a35e32
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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