Investment Climate Assessment in Indonesia, Malaysia, the Philippines and Thailand: Results from Pooling Firm-Level Data

The Singapore Economic Review, Vol. 54, No. 3, pp. 335-366, 2009

Posted: 25 Apr 2010

See all articles by Álvaro Escribano

Álvaro Escribano

Universidad Carlos III de Madrid - Department of Economics

J. Luis Guasch

World Bank - Finance, Private Sector and Infrastructure Sector (LCSFP)

Manuel de Orte

Universidad Carlos III de Madrid

Jorge Pena

Universidad Carlos III de Madrid

Date Written: August 2009

Abstract

Investment Climate surveys (ICs) are a recent instrument used by the World Bank to identify key obstacles to country competitiveness and to guide policy reforms and government interventions in developing countries. In this paper, panel data from four ICs of four South East Asian (SEA) countries namely, Indonesia, Malaysia, The Philippines, and Thailand, are pooled to estimate total factor productivity (TFP) and allocative efficiency aspects of firms in each country, using variants of the Olley and Pakes (1996) productivity decomposition. Several economic performance results are disaggregated to obtain country-specific evaluation of the IC impacts. To establish priorities for policy reforms, the corresponding key IC results are organized in five categories: infrastructures, red tape, corruption and crime, finance and corporate governance, quality, innovation and labor skills, and other control variables.

Keywords: Total factor productivity, investment climate, firms' perceptions, robust econometric methodology, demean Olley and Pakes decomposition, cross-country comparisons

JEL Classification: C23, C33, C43, C51, C52

Suggested Citation

Escribano, Álvaro and Guasch, José Luis and de Orte, Manuel and Pena, Jorge, Investment Climate Assessment in Indonesia, Malaysia, the Philippines and Thailand: Results from Pooling Firm-Level Data (August 2009). The Singapore Economic Review, Vol. 54, No. 3, pp. 335-366, 2009 . Available at SSRN: https://ssrn.com/abstract=1502452

Álvaro Escribano (Contact Author)

Universidad Carlos III de Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain
+34-91 6249854 (Phone)
+34-91 6249329 (Fax)

HOME PAGE: http://www.eco.uc3m.es/english/staff/contact_info/

José Luis Guasch

World Bank - Finance, Private Sector and Infrastructure Sector (LCSFP) ( email )

1818 H Street, NW
Washington, DC 20433
United States
202 473 8606 (Phone)
202 522 2106 (Fax)

Manuel De Orte

Universidad Carlos III de Madrid ( email )

Avenida Universidad Carlos III, 22
Colmenarejo, 28270
Spain

Jorge Pena

Universidad Carlos III de Madrid ( email )

Avenida Universidad Carlos III, 22
Colmenarejo, 28270
Spain

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