Publication: Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data
Date
2008-12
ISSN
Published
2008-12
Author(s)
Dethier, Jean-Jacques
Hirn, Maximilian
Straub, Stéphane
Abstract
This paper surveys the recent literature
which examines the impact of business climate variables on
productivity and growth in developing countries using
enterprise surveys. Comparable enterprise surveys today
cover some 70,000 firms in over 100 countries around the
world. The literature that has analyzed this data provides
evidence that a good business climate drives growth by
encouraging investment and higher productivity. Various
infrastructure, finance, security, competition and
regulation variables have been shown to significantly impact
firm performance. Section 1 of this paper outlines the
theoretical framework that underpins the investment climate
literature. Section 2 describes the available datasets and
surveys the key findings of the empirical literature, first
macroeconomic and then microeconomic studies. Particular
attention is paid to the robustness of the reported results.
Section 3 highlights important econometric issues common to
this literature and suggests a research agenda and possible
improvements in survey design.
Citation
“Dethier, Jean-Jacques; Hirn, Maximilian; Straub, Stéphane. 2008. Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data. Policy Research Working Paper; no. WPS 4792. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/6295 License: CC BY 3.0 IGO.”
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