Investment Climate and International Integration
Drawing on recently completed firm-level surveys in Bangladesh, Brazil, China, Honduras, India, Nicaragua, Pakistan, and Peru, this paper investigates the relationship between investment climate and international integration. These standardized sur...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4979501/investment-climate-international-integration http://hdl.handle.net/10986/14008 |
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okr-10986-140082021-04-23T14:03:21Z Investment Climate and International Integration Dollar, David Hallward-Driemeier, Mary Mengistae, Taye AVERAGE LEVEL AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATES BANKING SECTOR BENCHMARK BUREAUCRACY BUSINESS COMMUNITY BUSINESS SERVICES CAPITAL ACCUMULATION CITIES COMPARATIVE ADVANTAGE COMPARATIVE DEVELOPMENT CONSUMER GOODS CORRUPTION COUNTRY GROWTH CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS DELAYS DEVELOPMENT ECONOMICS DIRECT INVESTMENT DOMESTIC FIRMS DYNAMIC GROWTH ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC PERFORMANCE EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT EXPORT OPPORTUNITIES EXPORTS FARMS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FOREIGN EQUITY PARTICIPATION FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TRADE FORMAL TRADE GDP GLOBAL ECONOMY GLOBAL PRODUCTION GOVERNMENT EFFECTIVENESS GROWTH RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL MARKETS INTERNATIONAL TRADE INVESTMENT CLIMATES INVESTMENT POLICIES LOCAL GOVERNANCE LOCAL MARKET MARGINAL EFFECT MONETARY ECONOMICS NATIONAL LEVEL NATIONAL MARKET OPEN TRADE PHONE LINE PHONES POLITICAL STABILITY PRODUCERS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC SECTOR PUBLIC SERVICES REGIONAL DEVELOPMENT REGULATORY FRAMEWORK RULE OF LAW SOCIAL INSTITUTIONS STANDARD ERRORS TECHNOLOGY TRANSFER TELECOM SERVICES TELEPHONE CONNECTIVITY TRADE INTEGRATION TRADE POLICIES TRADE POLICY WAGES WORLD ECONOMY INVESTMENT CLIMATE INTERNATIONAL INTEGRATION TELEPHONE LINES POWER OUTAGES INTERNATIONAL MARKET REGULATORY ENVIRONMENT ECONOMIC GROWTH ECONOMIC DEVELOPMENT GLOBALIZATION FOREIGN DIRECT INVESTMENT TRADE POLICY AGGREGATE PRODUCTION FUNCTIONS Drawing on recently completed firm-level surveys in Bangladesh, Brazil, China, Honduras, India, Nicaragua, Pakistan, and Peru, this paper investigates the relationship between investment climate and international integration. These standardized surveys of large, random samples of firms in common sectors reveal how firms experience bottlenecks and delays in hard infrastructure such as power and telecom as well as in soft infrastructure such as customs administration. The authors focus primarily on measures of the time or monetary cost of different bottlenecks (e.g., days to clear goods through customs, days to get a telephone line, sales lost to power outages). For many of these costs, the obstacles are lower in China than in the South Asian or Latin American countries. There is also systematic variation across cities within countries. The authors estimate a probit function for the probability that a randomly chosen firm is foreign-invested and a separate probit for the probability that a randomly chosen firm is an exporter. These measures of international integration are higher where investment climate is better. For locations to take advantage of opportunities in the international market, they need good infrastructure and a sound regulatory environment. The interaction of openness and sound investment climate creates a good environment for investment and production. This paper helps explain why China has been so successful over the past decade, both in terms of integration and of rapid growth, while other countries have had varied success. 2013-06-19T16:40:03Z 2013-06-19T16:40:03Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4979501/investment-climate-international-integration http://hdl.handle.net/10986/14008 English en_US Policy Research Working Paper;No.3323 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Latin America & Caribbean South Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AVERAGE LEVEL AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATES BANKING SECTOR BENCHMARK BUREAUCRACY BUSINESS COMMUNITY BUSINESS SERVICES CAPITAL ACCUMULATION CITIES COMPARATIVE ADVANTAGE COMPARATIVE DEVELOPMENT CONSUMER GOODS CORRUPTION COUNTRY GROWTH CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS DELAYS DEVELOPMENT ECONOMICS DIRECT INVESTMENT DOMESTIC FIRMS DYNAMIC GROWTH ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC PERFORMANCE EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT EXPORT OPPORTUNITIES EXPORTS FARMS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FOREIGN EQUITY PARTICIPATION FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TRADE FORMAL TRADE GDP GLOBAL ECONOMY GLOBAL PRODUCTION GOVERNMENT EFFECTIVENESS GROWTH RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL MARKETS INTERNATIONAL TRADE INVESTMENT CLIMATES INVESTMENT POLICIES LOCAL GOVERNANCE LOCAL MARKET MARGINAL EFFECT MONETARY ECONOMICS NATIONAL LEVEL NATIONAL MARKET OPEN TRADE PHONE LINE PHONES POLITICAL STABILITY PRODUCERS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC SECTOR PUBLIC SERVICES REGIONAL DEVELOPMENT REGULATORY FRAMEWORK RULE OF LAW SOCIAL INSTITUTIONS STANDARD ERRORS TECHNOLOGY TRANSFER TELECOM SERVICES TELEPHONE CONNECTIVITY TRADE INTEGRATION TRADE POLICIES TRADE POLICY WAGES WORLD ECONOMY INVESTMENT CLIMATE INTERNATIONAL INTEGRATION TELEPHONE LINES POWER OUTAGES INTERNATIONAL MARKET REGULATORY ENVIRONMENT ECONOMIC GROWTH ECONOMIC DEVELOPMENT GLOBALIZATION FOREIGN DIRECT INVESTMENT TRADE POLICY AGGREGATE PRODUCTION FUNCTIONS |
| spellingShingle |
AVERAGE LEVEL AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATES BANKING SECTOR BENCHMARK BUREAUCRACY BUSINESS COMMUNITY BUSINESS SERVICES CAPITAL ACCUMULATION CITIES COMPARATIVE ADVANTAGE COMPARATIVE DEVELOPMENT CONSUMER GOODS CORRUPTION COUNTRY GROWTH CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS DELAYS DEVELOPMENT ECONOMICS DIRECT INVESTMENT DOMESTIC FIRMS DYNAMIC GROWTH ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC PERFORMANCE EMPIRICAL ANALYSIS EMPIRICAL STUDIES EMPLOYMENT EXPORT OPPORTUNITIES EXPORTS FARMS FINANCIAL SERVICES FINANCIAL SUPPORT FINANCIAL SYSTEM FOREIGN EQUITY PARTICIPATION FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN TRADE FORMAL TRADE GDP GLOBAL ECONOMY GLOBAL PRODUCTION GOVERNMENT EFFECTIVENESS GROWTH RATES INTERNATIONAL DEVELOPMENT INTERNATIONAL MARKETS INTERNATIONAL TRADE INVESTMENT CLIMATES INVESTMENT POLICIES LOCAL GOVERNANCE LOCAL MARKET MARGINAL EFFECT MONETARY ECONOMICS NATIONAL LEVEL NATIONAL MARKET OPEN TRADE PHONE LINE PHONES POLITICAL STABILITY PRODUCERS PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC SECTOR PUBLIC SERVICES REGIONAL DEVELOPMENT REGULATORY FRAMEWORK RULE OF LAW SOCIAL INSTITUTIONS STANDARD ERRORS TECHNOLOGY TRANSFER TELECOM SERVICES TELEPHONE CONNECTIVITY TRADE INTEGRATION TRADE POLICIES TRADE POLICY WAGES WORLD ECONOMY INVESTMENT CLIMATE INTERNATIONAL INTEGRATION TELEPHONE LINES POWER OUTAGES INTERNATIONAL MARKET REGULATORY ENVIRONMENT ECONOMIC GROWTH ECONOMIC DEVELOPMENT GLOBALIZATION FOREIGN DIRECT INVESTMENT TRADE POLICY AGGREGATE PRODUCTION FUNCTIONS Dollar, David Hallward-Driemeier, Mary Mengistae, Taye Investment Climate and International Integration |
| geographic_facet |
East Asia and Pacific Latin America & Caribbean South Asia |
| relation |
Policy Research Working Paper;No.3323 |
| description |
Drawing on recently completed firm-level
surveys in Bangladesh, Brazil, China, Honduras, India,
Nicaragua, Pakistan, and Peru, this paper investigates the
relationship between investment climate and international
integration. These standardized surveys of large, random
samples of firms in common sectors reveal how firms
experience bottlenecks and delays in hard infrastructure
such as power and telecom as well as in soft infrastructure
such as customs administration. The authors focus primarily
on measures of the time or monetary cost of different
bottlenecks (e.g., days to clear goods through customs, days
to get a telephone line, sales lost to power outages). For
many of these costs, the obstacles are lower in China than
in the South Asian or Latin American countries. There is
also systematic variation across cities within countries.
The authors estimate a probit function for the probability
that a randomly chosen firm is foreign-invested and a
separate probit for the probability that a randomly chosen
firm is an exporter. These measures of international
integration are higher where investment climate is better.
For locations to take advantage of opportunities in the
international market, they need good infrastructure and a
sound regulatory environment. The interaction of openness
and sound investment climate creates a good environment for
investment and production. This paper helps explain why
China has been so successful over the past decade, both in
terms of integration and of rapid growth, while other
countries have had varied success. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Dollar, David Hallward-Driemeier, Mary Mengistae, Taye |
| author_facet |
Dollar, David Hallward-Driemeier, Mary Mengistae, Taye |
| author_sort |
Dollar, David |
| title |
Investment Climate and International Integration |
| title_short |
Investment Climate and International Integration |
| title_full |
Investment Climate and International Integration |
| title_fullStr |
Investment Climate and International Integration |
| title_full_unstemmed |
Investment Climate and International Integration |
| title_sort |
investment climate and international integration |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4979501/investment-climate-international-integration http://hdl.handle.net/10986/14008 |
| _version_ |
1764430349581942784 |