Administrative Barriers to Foreign Investment in Developing Countries
Recent international experience has shown that excessively complex administrative procedures, required to establish, and operate a business, discourage inflows of foreign direct investment. The authors present a new database on the administrative c...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/05/1801618/administrative-barriers-foreign-investment-developing-countries http://hdl.handle.net/10986/14794 |
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okr-10986-147942021-04-23T14:03:20Z Administrative Barriers to Foreign Investment in Developing Countries Morisset, Jacques Lumenga Neso, Olivier ADMINISTRATIVE CAPACITY ADMINISTRATIVE PROCEDURES ADMINISTRATIVE PROCESS ADMINISTRATIVE REFORMS ADMINISTRATIVE SYSTEM BARRIERS TO ENTRY CIVIL LIBERTIES CLOSED ECONOMIES COMPETITIVENESS CORRELATION ANALYSIS CORRUPTION ECONOMIC DEVELOPMENT EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE FINANCIAL RESOURCES FISCAL FISCAL INCENTIVES FISCAL REVENUES FISCAL SITUATION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN TRADE FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNMENT AGENCIES GOVERNMENT REGULATION HEALTH CARE IMMIGRATION INCOME INCOME LEVELS INFORMAL SECTOR INSTITUTIONAL REFORMS INSTITUTIONAL VARIABLES INTERVENTION INVESTMENT CLIMATE JUDICIARY LAWS LEGAL SYSTEM LOCAL AUTHORITIES MARGINAL COSTS MINISTRY OF FINANCE MOTIVATIONS NATURAL ENDOWMENTS OPPORTUNITY COST OPPORTUNITY COSTS POLITICIANS POTENTIAL INVESTORS PRIVILEGED GROUPS PRODUCTIVITY PROPERTY RIGHTS PUBLIC ADMINISTRATION PUBLIC SECTOR QUALITY CONTROL SAFETY SCREENING SOCIAL SECURITY SOCIAL WELFARE STATE AGENCIES TAX COLLECTION TAX REVENUES TOTAL COSTS TRADE LIBERALIZATION TRANSPARENCY UTILITY FUNCTION WAGES FOREIGN INVESTMENT DEVELOPING COUNTRIES ADMINISTRATIVE BOUNDARIES BUSINESS ENVIRONMENT FOREIGN DIRECT INVESTMENTS ADMINISTRATIVE COSTS PRIVATE INVESTMENTS TAX REPORTING REGULATORY FRAMEWORK LAND ADMINISTRATION IMPORTS INSPECTIONS MONETARY INDICATORS ACCESS TO LAND BUILDING PERMITS OPERATIONAL INTERVENTIONS CORRUPTION GOVERNANCE CAPACITY ADMINISTRATIVE REFORMS TRADE LIBERALIZATION FINANCIAL LIBERALIZATION Recent international experience has shown that excessively complex administrative procedures, required to establish, and operate a business, discourage inflows of foreign direct investment. The authors present a new database on the administrative costs faced by private investors in 32 developing countries. The database is much more comprehensive than the existing sources, as it contains not only information on general entry procedures, such as business and tax registration, but also captures regulation on land access, site development, import procedures, and inspections, The data include measures on the number of procedures, direct monetary costs, and time. The cost of administrative procedures vary significantly across countries. The most important barriers appear to be the delays associated with securing land access, and obtaining building permits, which in several countries, take more than two years. Countries that impose excessive administrative costs on entry, tend to be equally intrusive in firm operations, thereby weakening the argument that barriers to entry, are a substitute for the government's unwillingness, or inability to regulate enterprise operations. The level of administrative costs is positively correlated with corruption incidence, and exhibits a negative correlation with the quality of governance, degree of openness, and public wages. These correlations suggest that administrative reforms, need to be incorporated into the broader agenda for reforms, such as trade and financial liberalization, the fight against corruption, and public sector administration. 2013-08-05T16:21:55Z 2013-08-05T16:21:55Z 2002-05 http://documents.worldbank.org/curated/en/2002/05/1801618/administrative-barriers-foreign-investment-developing-countries http://hdl.handle.net/10986/14794 English en_US Policy Research Working Paper;No.2848 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADMINISTRATIVE CAPACITY ADMINISTRATIVE PROCEDURES ADMINISTRATIVE PROCESS ADMINISTRATIVE REFORMS ADMINISTRATIVE SYSTEM BARRIERS TO ENTRY CIVIL LIBERTIES CLOSED ECONOMIES COMPETITIVENESS CORRELATION ANALYSIS CORRUPTION ECONOMIC DEVELOPMENT EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE FINANCIAL RESOURCES FISCAL FISCAL INCENTIVES FISCAL REVENUES FISCAL SITUATION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN TRADE FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNMENT AGENCIES GOVERNMENT REGULATION HEALTH CARE IMMIGRATION INCOME INCOME LEVELS INFORMAL SECTOR INSTITUTIONAL REFORMS INSTITUTIONAL VARIABLES INTERVENTION INVESTMENT CLIMATE JUDICIARY LAWS LEGAL SYSTEM LOCAL AUTHORITIES MARGINAL COSTS MINISTRY OF FINANCE MOTIVATIONS NATURAL ENDOWMENTS OPPORTUNITY COST OPPORTUNITY COSTS POLITICIANS POTENTIAL INVESTORS PRIVILEGED GROUPS PRODUCTIVITY PROPERTY RIGHTS PUBLIC ADMINISTRATION PUBLIC SECTOR QUALITY CONTROL SAFETY SCREENING SOCIAL SECURITY SOCIAL WELFARE STATE AGENCIES TAX COLLECTION TAX REVENUES TOTAL COSTS TRADE LIBERALIZATION TRANSPARENCY UTILITY FUNCTION WAGES FOREIGN INVESTMENT DEVELOPING COUNTRIES ADMINISTRATIVE BOUNDARIES BUSINESS ENVIRONMENT FOREIGN DIRECT INVESTMENTS ADMINISTRATIVE COSTS PRIVATE INVESTMENTS TAX REPORTING REGULATORY FRAMEWORK LAND ADMINISTRATION IMPORTS INSPECTIONS MONETARY INDICATORS ACCESS TO LAND BUILDING PERMITS OPERATIONAL INTERVENTIONS CORRUPTION GOVERNANCE CAPACITY ADMINISTRATIVE REFORMS TRADE LIBERALIZATION FINANCIAL LIBERALIZATION |
| spellingShingle |
ADMINISTRATIVE CAPACITY ADMINISTRATIVE PROCEDURES ADMINISTRATIVE PROCESS ADMINISTRATIVE REFORMS ADMINISTRATIVE SYSTEM BARRIERS TO ENTRY CIVIL LIBERTIES CLOSED ECONOMIES COMPETITIVENESS CORRELATION ANALYSIS CORRUPTION ECONOMIC DEVELOPMENT EMPIRICAL EVIDENCE EQUILIBRIUM EXCHANGE RATE FINANCIAL RESOURCES FISCAL FISCAL INCENTIVES FISCAL REVENUES FISCAL SITUATION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FOREIGN TRADE FUTURE RESEARCH GDP GDP PER CAPITA GOOD GOVERNANCE GOVERNMENT AGENCIES GOVERNMENT REGULATION HEALTH CARE IMMIGRATION INCOME INCOME LEVELS INFORMAL SECTOR INSTITUTIONAL REFORMS INSTITUTIONAL VARIABLES INTERVENTION INVESTMENT CLIMATE JUDICIARY LAWS LEGAL SYSTEM LOCAL AUTHORITIES MARGINAL COSTS MINISTRY OF FINANCE MOTIVATIONS NATURAL ENDOWMENTS OPPORTUNITY COST OPPORTUNITY COSTS POLITICIANS POTENTIAL INVESTORS PRIVILEGED GROUPS PRODUCTIVITY PROPERTY RIGHTS PUBLIC ADMINISTRATION PUBLIC SECTOR QUALITY CONTROL SAFETY SCREENING SOCIAL SECURITY SOCIAL WELFARE STATE AGENCIES TAX COLLECTION TAX REVENUES TOTAL COSTS TRADE LIBERALIZATION TRANSPARENCY UTILITY FUNCTION WAGES FOREIGN INVESTMENT DEVELOPING COUNTRIES ADMINISTRATIVE BOUNDARIES BUSINESS ENVIRONMENT FOREIGN DIRECT INVESTMENTS ADMINISTRATIVE COSTS PRIVATE INVESTMENTS TAX REPORTING REGULATORY FRAMEWORK LAND ADMINISTRATION IMPORTS INSPECTIONS MONETARY INDICATORS ACCESS TO LAND BUILDING PERMITS OPERATIONAL INTERVENTIONS CORRUPTION GOVERNANCE CAPACITY ADMINISTRATIVE REFORMS TRADE LIBERALIZATION FINANCIAL LIBERALIZATION Morisset, Jacques Lumenga Neso, Olivier Administrative Barriers to Foreign Investment in Developing Countries |
| relation |
Policy Research Working Paper;No.2848 |
| description |
Recent international experience has
shown that excessively complex administrative procedures,
required to establish, and operate a business, discourage
inflows of foreign direct investment. The authors present a
new database on the administrative costs faced by private
investors in 32 developing countries. The database is much
more comprehensive than the existing sources, as it contains
not only information on general entry procedures, such as
business and tax registration, but also captures regulation
on land access, site development, import procedures, and
inspections, The data include measures on the number of
procedures, direct monetary costs, and time. The cost of
administrative procedures vary significantly across
countries. The most important barriers appear to be the
delays associated with securing land access, and obtaining
building permits, which in several countries, take more than
two years. Countries that impose excessive administrative
costs on entry, tend to be equally intrusive in firm
operations, thereby weakening the argument that barriers to
entry, are a substitute for the government's
unwillingness, or inability to regulate enterprise
operations. The level of administrative costs is positively
correlated with corruption incidence, and exhibits a
negative correlation with the quality of governance, degree
of openness, and public wages. These correlations suggest
that administrative reforms, need to be incorporated into
the broader agenda for reforms, such as trade and financial
liberalization, the fight against corruption, and public
sector administration. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Morisset, Jacques Lumenga Neso, Olivier |
| author_facet |
Morisset, Jacques Lumenga Neso, Olivier |
| author_sort |
Morisset, Jacques |
| title |
Administrative Barriers to Foreign Investment in Developing Countries |
| title_short |
Administrative Barriers to Foreign Investment in Developing Countries |
| title_full |
Administrative Barriers to Foreign Investment in Developing Countries |
| title_fullStr |
Administrative Barriers to Foreign Investment in Developing Countries |
| title_full_unstemmed |
Administrative Barriers to Foreign Investment in Developing Countries |
| title_sort |
administrative barriers to foreign investment in developing countries |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/05/1801618/administrative-barriers-foreign-investment-developing-countries http://hdl.handle.net/10986/14794 |
| _version_ |
1764429958397034496 |