Main Article Content

Abstract

Since 2003, the World Bank has produced an annual report ranking economies based on ease of doing business score. However, little is known whether the improvements made by evaluated economies on starting business indicators are statistically significant, as claimed by the World Bank. This study aims to evaluate the extent to which starting business indicators were improved in the 145 economies evaluated. The indicators assessed are: starting a business score (SBS), starting a business procedure for men (SBPM), starting a business time for men (SBTM), starting a business cost for men (SBCM), starting a business procedure for women (SBPW), starting a business time for women (SBTW), starting a business cost for women (SBCW), and starting a business in paid-in minimum capital (SBPMC). This study used secondary quantitative data retrieved from the database of the World Bank for the 2004 and 2020 periods. The sample size was made up of 145 economies. Wilcoxon-sign-rank-test-paired-sample was computed using the R programming environment. The results of the Wilcoxon-sign-rank-test-paired-sample indicated that the mean differences are statistically different from zero for all indicators except those evaluated. This means that the economies evaluated improved those indicators for 2020 compared to 2004. The study's findings provide clear insight to policymakers regarding innovations made to ease of doing business improvement. Better use of the results of this study would reduce corruption and increase formal business, increase the number of newly registered businesses, increase business opportunities for starting a new business, and increase companies' productivity. This study evaluated whether business regulations implemented regarding starting a business were statically significant. Future research should be conducted to empirically test the significance of implemented procedures related to other indicators evaluated in doing business reports. This research is novel by empirically testing innovations made in 145 world economies on starting business requirements.

References

  1. Buckley, P. J. & Casson, M. C. (2009). The internalisation theory of the multinational enterprise: a review of the progress of a research agenda after 30 years. Journal of International Business Studies, 40, 1563-1580. https://doi.org/10.1057/jibs.2009.49
  2. Canare, T. (2018). The effect of ease of doing business on firm creation. Annals of Economics and Finance 19(2), 555-584. https://doi.org/10.1080/13571510110051504
  3. Cantwell, J. & Narula, R. (2001). The eclectic paradigm in the global economy. Int. J. of the Economics of Business, 8 (2). 155-172. https://doi.org/10.1080/13571510110051504
  4. Chambers, D. & Munemo, J. )2019(. Regulations, institutional quality and entrepreneurship. International Journal of Energy Economics and Policy 11(2),133-140, https://doi.org/10.32479/ijeep.10584
  5. Davari, D. & Farokhmanesh, J. (2017). Regulations, institutional quality and entrepreneurship. Journal of Regulatory Economics, 55(1).
  6. Djankov, S., La Porta, R., Lopez-De-Silanes, F., & A. Shleifer. (2002). The regulation of entry. The Quarterly Journal of Economics,117 (1), 1-37.https://doi.org/10.1162/003355302753399436
  7. Etzioni, A. (2009). The capture theory of regulations-revisited. Society,46, 319-323. https://doi.org/10.1007/s12115-009-9228-3
  8. Goss-Sampson, M. A. (2018). Statistical analysis in JASP. A guide for students. https://static.jaspstats.org/Statistical%20Analysis%20in%20JASP%20%20A%20Students%20Guide%20v1.0.pdf
  9. Holcombe, R. G. (2018). Checks and balances: enforcing constitutional constraints. Economies, 6(4), 57.https://doi.org/10.3390/economies6040057
  10. Juan, M. R. J., Raquel, F. L., & Pedro, A. P. (2019). Resource-based view and SMEs performance exporting through foreign intermediaries: the mediating effect of management controls. Sustainability, 11(12), 3241.https://doi.org/10.3390/su11123241
  11. Kwak, S. G. & S. H. Park. (2019). Normality test in clinical research. Journal of Rheumatic Diseases, 26(1), 5-11. https://doi.org/10.4078/jrd.2019.26.1.5
  12. Martins, R. A., Serra, F. R., Leite, A. S., Ferreira, M. P., & Li, D. (2010). Transactions cost theory influence in strategy research: a review through a bibliometric study in leading journals. http://www.anpad.org.br/admin/pdf/eso82.pdf
  13. Mishra, V., Khanra, D., Himanshu, K., Jain, B., Tripathi, S., Aggarwal, P., Soni, S., Kumar Reddy, N., Singla, R., Mishra, M., & Sinha, S. (2019). Descriptive statistics and normality tests for statistical data. Annals of Cardiac Anaesthesia, 22(1), 67-72. https://doi.org/10.4103/aca.aca_157_18
  14. Mottaleb, K.A. & Kalirajan, K. (2010). Determinants of foreign direct investment in developing countries: a comparative analysis. The Journal of Applied Economic Research 4 (4), 369–404. https://doi.org/10.1177/097380101000400401
  15. Musara, M. & Gwaindepi, C. (2014). Factors within the business regulatory environment affecting entrepreneurial activity in South Africa. Mediterranean Journal of Social Sciences, 5(6), 109-116. https://doi.org/10.5901/mjss.2014.v5n6p109
  16. Myung, K.Y. & Choi, Y.H. (2017). The influences of leaders' dark triad trait on their perception of CSR. Asian Journal of Sustainability and Social Responsibility,2, 7-21.https://doi.org/10.1186/s41180-017-0013-8
  17. Olagunju, O.O. & J.O. Ikeolumba. (2019). The evaluation of the national policy on ease of doing business in Nigeria. European Scientific Journal,15 (8), 203-212.https://doi.org/10.19044/esj.2019.v15n8p203
  18. Prasad, S., Rao, A. & Rehani, E. (2001). Developing hypothesis and research questions. https://www.public.asu.edu/~kroel/www500/hypothesis.pdf
  19. Rindfleisch, A. (2019). Transaction cost theory: past, present and future. Academy of Marketing Science Review.10(1-2), 85–97.https://doi.org/10.1007/s13162-019-00151-x
  20. Stel, A.V., Storey, D.J. & Thurik, A.R. (2007). The effect of business regulations on nascent and young business entrepreneurship. Small Business Economics, 28(2),171-186. https://doi.org/10.1007/s11187-006-9014-1
  21. World Bank Group. (2020). Doing Business 2020. https://doi.org/10.1596/978-1-4648-1440-2

Article Details

How to Cite
Niyungeko, A. (2022). Evaluating Starting a Business Indicators Innovation in the World. Management & Economics Research Journal, 4(1), 1-17. https://doi.org/10.48100/merj.2022.172
Cited by