A multivariate study on Ease of Doing Business to predict a country

Master's Thesis , 2014 , 96 Pages , Grade: 75

Mathematics - Statistics

The Doing Business Report (DB) is a study elaborated by the World Bank Group since 2003 every year that is aimed to measure the costs to firms of business regulations in 189 countries in 2012.The study has become one of the flagship knowledge products of the World Bank Group in the field of Private Sector development, and is claimed to have motivated the design of several regulatory reforms in developing Countries. The study presents every year a detailed analysis of costs, requirements and procedures. A specific type of Private Firm is subject in all countries, and then, creates rankings for every country. The study is also backed up by broad communication efforts, and by creating rankings, the study spotlights countries and leaders that are promoting reforms.

Inhaltsverzeichnis (Table of Contents)

• ACKNOWLEDGEMENT
• INTRODUCTION
  • 1.1 Doing Business
  • 1.2 Ease of doing business index
  • 1.3 Starting a Business Methodology
  • 1.4 Dealing with Construction Permits Methodology
  • 1.5 Getting Electricity Methodology
  • 1.6 Registering Property Methodology
  • 1.7 Getting Credit Methodology
  • 1.8 Protecting Investors Methodology
  • 1.9 Paying Taxes Methodology
  • 1.10 Trading Across Borders Methodology
  • 1.11 Enforcing Contracts Methodology
  • 1.12 Resolving Insolvency Methodology
  • 1.13 OBJECTIVES
  • 1.14 SOURCE OF DATA
  • 1.15 VARIABLE DESCRIPTION
  • 1.16 PROCEDURES
• METHODOLOGY
  • 2.1 Factor Analysis
    • 2.1.1 Introduction
    • 2.1.2 Orthogonal Transformation
    • 2.1.3 Assumption
    • 2.1.4 Parameter Reduction
    • 2.1.5 Trivial case
    • 2.1.6 Principal Component (Principal Factor) Method
    • 2.1.7 Factor Rotation
    • 2.1.8 Criterion for choosing the orthogonal matrix [Varimax criterion]
    • 2.1.9 Factor Scores
  • 2.2 MULTIPLE LINEAR REGRESSIONS
    • 2.2.1 Data and Sample regression model
    • 2.2.2 Assumptions
    • 2.2.3 Estimation of the regression parameters
    • 2.2.4 Properties of LSE's
    • 2.2.5 Prediction and Residuals
    • 2.2.6 Decomposition of the overall variability in the data
    • 2.2.7 Estimation of σ²
    • 2.2.8 Hypothesis Testing in multiple linear regressions
    • 2.2.9 Coefficient of determination (R²) and Adjusted R²
    • 2.2.10 Multicollinearity
    • 2.2.11 Multicollinearity Diagnostics
    • 2.2.12 Remedial Measures for Multicollinearity
• ANALYSIS & OUTPUT
  • 3.1 Factor Analysis
  • 3.2 Multiple Linear Regressions
  • 3.3 Variance Inflation Factors
  • 3.4 Rank Method
• CHAPTER 4
  • CONCLUSIONS
    • 4.1 Conclusions
• CHAPTER 5
• APPENDIX
  • APPENDIX A - Code for Factor Analysis
  • APPENDIX B - Code for Correlation
  • APPENDIX C - Code for Variance Inflation Factors
  • APPENDIX D - Code for Multiple Linear Regressions
  • APPENDIX E - Code for Ranking
  • APPENDIX F - Sample Data
• BIBLIOGRAPHY

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This project report, submitted as part of the Masters of Science in Statistics program at Loyola College (Autonomous), aims to conduct a multivariate study on the ease of doing business in various countries. The study utilizes data from the World Bank's Ease of Doing Business Index to predict a country's overall business environment.

• Analyzing the factors influencing the ease of doing business across different countries.
• Developing a predictive model to estimate a country's overall business environment based on various indicators.
• Identifying key areas where countries can improve their business environment to attract investment and foster economic growth.
• Exploring the relationship between different indicators of the ease of doing business and their impact on economic performance.
• Applying statistical techniques like factor analysis and multiple linear regression to analyze the data and draw meaningful conclusions.

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction provides a comprehensive overview of the concept of "ease of doing business" and its significance in the global economy. It defines the Ease of Doing Business Index, its methodology, and the specific indicators used to measure the business environment in different countries. The chapter also outlines the objectives of the study and the data sources used.

The methodology chapter delves into the statistical techniques employed in the study, including factor analysis and multiple linear regression. It explains the theoretical foundations of these techniques and their application in analyzing the ease of doing business data. The chapter also discusses the assumptions and limitations of these methods.

The analysis and output chapter presents the results of the study, including the factor analysis results, the multiple linear regression model, and the variance inflation factors. It interprets the findings and discusses the significance of the results in relation to the objectives of the study.

Schlüsselwörter (Keywords)

The key terms and focus themes of the text include Ease of Doing Business, World Bank, Ease of Doing Business Index, Factor Analysis, Multiple Linear Regression, Business Environment, Economic Growth, Investment, and Country Rankings.

• College: Technical University of Berlin (Loyola College)
• Course: M.Sc Statistics
• Grade: 75
• Author: Sugabalan Sivagnanam (Author)
• Publication Year: 2014
• Pages: 96
• Catalog Number: V277375
• ISBN (eBook): 9783656711506
• ISBN (Book): 9783656712794
• Language: English
• Tags: ease, doing, business