Improvements in the World Bank's Ease of Doing Business Rankings: Do they translate into greater foreign direct investment inflows?
Development Policy Centre Discussion Papers from Development Policy Centre, Crawford School of Public Policy, The Australian National University
The World Bank's Ease of Doing Business reports have been ranking countries since 2006. However, do improvements in rankings generate greater foreign direct investment inflows? This study is the first to test such a proposition empirically with Arellano-Bond dynamic panel estimators using the official rankings from 2006 to 2009. The paper shows this relationship is significant for the average country. However, when the sample is restricted to developing countries, the results suggest an improved ranking has, on average, an insignificant (albeit positive) influence on foreign direct investment inflows. Although robust, this result should be taken with caution given that it refers to the average developing country using data across a four-year time period. Finally, the paper demonstrates that, on average, countries that undertake large-scale reforms relative to other countries do not necessarily attract greater foreign direct investment inflows. This analysis may have important ramifications for developing country governments wanting to improve their Doing Business Rankings in the hope of attracting foreign direct investment inflows.
Keywords: aid (search for similar items in EconPapers)
JEL-codes: O19 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38) Track citations by RSS feed
Downloads: (external link)
http://devpolicy.anu.edu.au/pdf/papers/DP_8_-_Impr ... usienss_rankings.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:een:devpol:1108
Access Statistics for this paper
More papers in Development Policy Centre Discussion Papers from Development Policy Centre, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Macarena Rojas ().