Ease of doing business index gives idea of business environment of country. Index also helps in understanding governments approach and interests. It has interesting history and that thing itself makes it important.
About Ease of Doing Business Index
It was created by two most leading economist named Simeon Djankov and Gerhard Pohl at the World Bank Group. Academical research was done with collaboration of professors Oliver Hart & Andrei Shleifer. Higher the ranking, favourable will be the business environment. Highest is >85 and lowest is <25.
Ease of doing business is measured by factors like construction permit, registration, getting credit, tax payments mechanism, etc. Index is calculated based on response to a questionnaire developed by Doing business. This questionnaire helps in collecting relevant data by appropriate questions from around 12,000 respondents.
Factors of ranking index for Ease of doing business are mentioned below :-
- Dealing with Construction Permits
- Getting Electricity
- Registering Property
- Getting Credit
- Protecting Minority Investors
- Paying Taxes
- Trading across Borders
- Enforcing Contracts
- Resolving Insolvency
Recent Ranking of Countries based on Ease of Doing Business
New Zealand ranks number 1 in Index of Ease of doing business. Individual ranking of factors differs for each other. Like New Zealand also Rank 1 in Getting Credit.
Singapore ranks number 2 but does have better ranking than New Zealand in some factors like Enforcing Contracts, Paying taxes, Registering property, Getting electricity, etc.
Ranking 3rd doesn’t make it difficult to start business in Hong Kong. It does have favourable business environment.
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