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Abstract
This article aims to identify indicators which measure business regulation used in Doing Business Ranking are related and can be used as predictors of starting a business. This study used the Doing Business 2018 data set, clustered on the country's income group classifications. The results show significant differences in starting a business, depending on the country's income or being a member of OECD. A moderate correlation was observed among economic regulators. The variables that account for most of the explanation of the variation of starting a business are: paying taxes, dealing with construction permits, obtaining credit, enforcing contract and protecting minority investors. The contribution of the study is to show that certain regulators allow estimating the performance of the country in starting a business and what is the difference of influence according to the country's income classification.
Keywords: Doing Business, OECD, Business Regulations, Starting a Business.
Business openness, business environment, and the motivations of entrepreneurs are regularly studied (Ahmad & Muhammad Arif, 2016; Brettel, Chomik & Flatten, 2015; De Massis, Audretsch, Uhlaner & Kammerlander, 2018; Man, Lau & Chan, 2002; Sahut & Peris-Ortiz, 2014; van der Zwan, Thurik, Verheul & Hessels, 2016; ' Nangpiire, Rodrigues, & Adam, 2018; Raposo, Rodrigues, Dinis, Paço, & Ferreira, 2014). Due to this interest, both theoretical and practical, the World Bank Doing Business, for 15 years now, provides an annual report of the regulatory aspects of 190 countries, with the ranking of sites that facilitate the business environment (Doing Business, 2018).
The regulation of business is relevant (Besley, 2015) since they are the rules of business gaming (Jitmaneeroj, 2016). Its impact begins with the business creation process (Klapper, Lewin, Delgado & Anat Lewin, 2011). Therefore, the mentioned report is a source of secondary data used in empirical scientific research, as well as by governments and companies in changes in existing regulations and their decision-making (Pinheiro-Alves & Zambujal-Oliveira, 2012; Ruiz, Cabello & Pérez-Gladish, 2018).
Doing Business Report Data is advocated and used in many other studies. Notably, in the importance of regulation for economic growth, Haidar (2012) argues that the countries with the most changes show more growth and those countries that made changes before the 2008 crisis were less affected. Laws as part of economic context and French...