Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment
Using multiple sources of national- and firm-level data around the world, this paper investigates how the effects of the business environment depend on whether the measure is de jure or de facto, and how business environment effects differ by owne...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/536861579636200628/Heterogeneous-Effects-of-the-de-jure-and-de-facto-Business-Environment-Findings-from-Multiple-Data-Sets-on-the-Business-Environment http://hdl.handle.net/10986/33229 |
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okr-10986-332292022-09-20T00:13:06Z Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment Zhenwei Qiang, Christine Wang, He Xu, L. Colin BUSINESS ENVIRONMENT STATE-OWNED ENTERPRISES STATE CAPACITY OWNERSHIP FIRM SIZE SMALL AND MEDIUM ENTERPRISES CORRUPTION INFRASTRUCTURE HUMAN CAPITAL ACCESS TO LAND ACCESS TO ELECTRICITY INTERNET CONNECTIVITY Using multiple sources of national- and firm-level data around the world, this paper investigates how the effects of the business environment depend on whether the measure is de jure or de facto, and how business environment effects differ by ownership and size. The paper compares estimates of business environment effects from three data sources, and modifies the priors on the relative importance of various elements of the business environment. Among four aspects of the business environment, at least two sets are robust and a third set does not contradict the other two: access to finance, electricity, internet, and human capital. The effects of de jure business environment indicators on firm performances depend on measures of contract enforcement. Foreign-owned firms benefit more from the maintenance of physical safety and ease in obtaining construction permits, and gain competitive advantage in productivity when domestic infrastructure or access to finance is worse. Relatively small firms benefit more from corruption control, basic and modern infrastructure, human capital, and land access. Relatively large firms benefit more from physical safety. Access to finance is important for the expansion of smaller firms and the productivity of large firms. 2020-01-23T19:41:26Z 2020-01-23T19:41:26Z 2020-01 Working Paper http://documents.worldbank.org/curated/en/536861579636200628/Heterogeneous-Effects-of-the-de-jure-and-de-facto-Business-Environment-Findings-from-Multiple-Data-Sets-on-the-Business-Environment http://hdl.handle.net/10986/33229 English Policy Research Working Paper;No. 9115 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BUSINESS ENVIRONMENT STATE-OWNED ENTERPRISES STATE CAPACITY OWNERSHIP FIRM SIZE SMALL AND MEDIUM ENTERPRISES CORRUPTION INFRASTRUCTURE HUMAN CAPITAL ACCESS TO LAND ACCESS TO ELECTRICITY INTERNET CONNECTIVITY |
| spellingShingle |
BUSINESS ENVIRONMENT STATE-OWNED ENTERPRISES STATE CAPACITY OWNERSHIP FIRM SIZE SMALL AND MEDIUM ENTERPRISES CORRUPTION INFRASTRUCTURE HUMAN CAPITAL ACCESS TO LAND ACCESS TO ELECTRICITY INTERNET CONNECTIVITY Zhenwei Qiang, Christine Wang, He Xu, L. Colin Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| relation |
Policy Research Working Paper;No. 9115 |
| description |
Using multiple sources of national- and
firm-level data around the world, this paper investigates
how the effects of the business environment depend on
whether the measure is de jure or de facto, and how
business environment effects differ by ownership and size.
The paper compares estimates of business environment effects
from three data sources, and modifies the priors on the
relative importance of various elements of the business
environment. Among four aspects of the business environment,
at least two sets are robust and a third set does not
contradict the other two: access to finance, electricity,
internet, and human capital. The effects of de jure business
environment indicators on firm performances depend on
measures of contract enforcement. Foreign-owned firms
benefit more from the maintenance of physical safety and
ease in obtaining construction permits, and gain competitive
advantage in productivity when domestic infrastructure or
access to finance is worse. Relatively small firms benefit
more from corruption control, basic and modern
infrastructure, human capital, and land access. Relatively
large firms benefit more from physical safety. Access to
finance is important for the expansion of smaller firms and
the productivity of large firms. |
| format |
Working Paper |
| author |
Zhenwei Qiang, Christine Wang, He Xu, L. Colin |
| author_facet |
Zhenwei Qiang, Christine Wang, He Xu, L. Colin |
| author_sort |
Zhenwei Qiang, Christine |
| title |
Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| title_short |
Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| title_full |
Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| title_fullStr |
Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| title_full_unstemmed |
Heterogeneous Effects of the de jure and de facto Business Environment : Findings from Multiple Data Sets on the Business Environment |
| title_sort |
heterogeneous effects of the de jure and de facto business environment : findings from multiple data sets on the business environment |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/536861579636200628/Heterogeneous-Effects-of-the-de-jure-and-de-facto-Business-Environment-Findings-from-Multiple-Data-Sets-on-the-Business-Environment http://hdl.handle.net/10986/33229 |
| _version_ |
1764478272511410176 |