The Ease of Doing Business Index as a tool for Investment location decisions

João Zambujal Oliveira () and Ricardo Pinheiro Alves ()
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João Zambujal Oliveira: Centre for Management Studies (CEG-IST); Department of Engineering and Management (DEG); Technical University of Lisbon (UTL-IST)
Ricardo Pinheiro Alves: Instituto de Artes Visuais, Design e Marketing and Gabinete de Estratégia e Estudos do Ministério da Economia, da Inovação e do Desenvolvimento,Portugal
Authors registered in the RePEc Author Service: J. Zambujal-Oliveira () and Ricardo Pinheiro-Alves

No 30, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: The Ease of Doing Business Index (EDBI) uses 41 variables to compare the business environment of different countries. It is widely used by policy makers, researchers and multinational companies. This paper aims to assess EDBI’s consistency and validity in representing the business environment by using factor analysis. It is found that the EDBI presents a limited consistency and descriptive power of a country’s business environment. The consequence of these findings is that multinational firms should handle carefully the EDBI in their investment decisions.

Keywords: Location Decisions; Factor Analysis; Cross-Border Investments; Institutional Environment (search for similar items in EconPapers)
JEL-codes: C38 F21 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2010-12, Revised 2010-12
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Downloads: (external link)
https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_30.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: The Ease of Doing Business Index as a tool for investment location decisions (2012)
Working Paper: The Ease of Doing Business Index as a Tool for Investment Location Decisions (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0030

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