A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey

Several studies in the literature have adopted attitude or perception-based survey questions to evaluate the business environment and its effect on firms. The Enterprise Surveys of the World Bank are not an exception. In the case of the Enterprise...

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Main Authors: Islam, Asif M., Rodriguez Meza, Jorge
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/791411617632412553/A-Cautionary-Tale-An-Experiment-on-The-Stability-of-Business-Environment-Perceptions-in-a-Firm-Survey
http://hdl.handle.net/10986/35405
id okr-10986-35405
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spelling okr-10986-354052022-09-20T00:10:28Z A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey Islam, Asif M. Rodriguez Meza, Jorge BUSINESS ENVIRONMENT FIRM SURVEY PERCEPTION OF CORRUPTION SURVEY BIAS SUBJECTIVE RESPONSE QUESTION ORDER ENTERPRISE SURVEY CONTEXT EFFECTS BUSINESS LICENSE PERMITS Several studies in the literature have adopted attitude or perception-based survey questions to evaluate the business environment and its effect on firms. The Enterprise Surveys of the World Bank are not an exception. In the case of the Enterprise Surveys, these questions involve rating an element of the business environment at the end of each section of the survey instrument. Such questions are often used but sometimes are inconsistent with responses elicited on the experience of the firm over a specific timeframe—experience-based questions. The literature is mixed as to whether perception-based questions are susceptible to anchoring or context effects. In this study, an experiment is set up to explore whether perceptions of the business environment are stable or vulnerable to the ordering of questions in the Enterprise Surveys questionnaire. The experiment entails randomizing the placement order of the perception-based questions at the end of a section or at the beginning of the survey. Significant question-order effects are uncovered only for perceptions of corruption and business licensing and permits but not the other elements, after accounting for a variety of factors. The study recommends that analysis in these two areas should go beyond perception-based questions and verify their findings with experience-based questions. 2021-04-08T16:16:16Z 2021-04-08T16:16:16Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/791411617632412553/A-Cautionary-Tale-An-Experiment-on-The-Stability-of-Business-Environment-Perceptions-in-a-Firm-Survey http://hdl.handle.net/10986/35405 English Policy Research Working Paper;No. 9610 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
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic BUSINESS ENVIRONMENT
FIRM SURVEY
PERCEPTION OF CORRUPTION
SURVEY BIAS
SUBJECTIVE RESPONSE
QUESTION ORDER
ENTERPRISE SURVEY
CONTEXT EFFECTS
BUSINESS LICENSE
PERMITS
spellingShingle BUSINESS ENVIRONMENT
FIRM SURVEY
PERCEPTION OF CORRUPTION
SURVEY BIAS
SUBJECTIVE RESPONSE
QUESTION ORDER
ENTERPRISE SURVEY
CONTEXT EFFECTS
BUSINESS LICENSE
PERMITS
Islam, Asif M.
Rodriguez Meza, Jorge
A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
relation Policy Research Working Paper;No. 9610
description Several studies in the literature have adopted attitude or perception-based survey questions to evaluate the business environment and its effect on firms. The Enterprise Surveys of the World Bank are not an exception. In the case of the Enterprise Surveys, these questions involve rating an element of the business environment at the end of each section of the survey instrument. Such questions are often used but sometimes are inconsistent with responses elicited on the experience of the firm over a specific timeframe—experience-based questions. The literature is mixed as to whether perception-based questions are susceptible to anchoring or context effects. In this study, an experiment is set up to explore whether perceptions of the business environment are stable or vulnerable to the ordering of questions in the Enterprise Surveys questionnaire. The experiment entails randomizing the placement order of the perception-based questions at the end of a section or at the beginning of the survey. Significant question-order effects are uncovered only for perceptions of corruption and business licensing and permits but not the other elements, after accounting for a variety of factors. The study recommends that analysis in these two areas should go beyond perception-based questions and verify their findings with experience-based questions.
format Working Paper
author Islam, Asif M.
Rodriguez Meza, Jorge
author_facet Islam, Asif M.
Rodriguez Meza, Jorge
author_sort Islam, Asif M.
title A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
title_short A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
title_full A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
title_fullStr A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
title_full_unstemmed A Cautionary Tale : An Experiment on the Stability of Business Environment Perceptions in a Firm Survey
title_sort cautionary tale : an experiment on the stability of business environment perceptions in a firm survey
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/791411617632412553/A-Cautionary-Tale-An-Experiment-on-The-Stability-of-Business-Environment-Perceptions-in-a-Firm-Survey
http://hdl.handle.net/10986/35405
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