Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data

47 Pages Posted: 20 Apr 2016

See all articles by Jean-Jacques Dethier

Jean-Jacques Dethier

World Bank

Maximilian Hirn

World Bank

Stéphane Straub

University of Toulouse 1 - Toulouse School of Economics (TSE)

Date Written: December 1, 2008

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.

Keywords: E-Business, Emerging Markets, Transport Economics Policy & Planning, Labor Policies

Suggested Citation

Dethier, Jean-Jacques and Hirn, Maximilian and Straub, Stephane, Explaining Enterprise Performance in Developing Countries with Business Climate Survey Data (December 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1313511

Jean-Jacques Dethier (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/jdethier

Maximilian Hirn

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Stephane Straub

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

21 Allée de Brienne
F-31042 Toulouse Cedex, 31000
France
05 61 12 85 37 (Phone)
05 61 12 85 38 (Fax)

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