Skip to main content

The Firms Speak: What the World Business Environment Survey Tells Us about Constraints on Private Sector Development

  • Chapter

Abstract

What do active business managers view as their main obstacles to the operation and growth of their firms? What conditions are associated with a higher level of enterprise growth? Why do firms so frequently opt to function unofficially? What makes reforms so difficult, especially in countries with influential private firms? Is corruption less harmful to business operation when it is predictable?

This article is adapted from a larger volume, Voices of the Firm 2000: Investment Climate and Governance Findings of the World Business Environment Survey (WBES), by Geeta Batra, Daniel Kaufmann, and Andrew H. W. Stone (World Bank 2002). The WBES Steering Committee included the authors and Guy Pfeffermann, Homi Kharas, Shyam Khemani (later Joseph Battat), and Luke Haggarty. Partners included EBRD, IDB and Harvard CID. The work for this paper was supported by a grant from the Swiss Government, and by joint funding from FIAS, the Private Sector Advisory Department, the World Bank Institute, and the Innovation Marketplace.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   74.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Batra, Geeta, and Hong Tan. Forthcoming. “Inter-Firm Linkages and Total Factor Productivity Growth in Malaysian Manufacturing.” World Bank, Washington, D.C.

    Google Scholar 

  • Batra, Geeta, Daniel Kaufmann, and Andrew H. W. Stone. 2002. Voices of the Firm 2000: Investment Climate and Governance Findings of the World Business Environment Survey (WBES). Washington, D.C.: World Bank.

    Google Scholar 

  • Campos, J. E., D. Lien, and S. Pradhan. 1999. “The Impact of Corruption on Investment: Predictability Matters.” World Development 27(6): 1059–1067.

    Article  Google Scholar 

  • Friedman, E., Simon Johnson, Daniel Kaufmann, and Pablo Zoido-Lobatón. 2000. “Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries.” Journal of Public Economics (June).

    Google Scholar 

  • Hellman, Joel S., and Daniel Kaufmann. 2001.“Confronting the Challenge of State Capture in Transition Economies.” Finance and Development 38(3) http://umw.imf.org/external/pubs/ft/fandd/2001/09/hellman.htm

  • IFC (International Finance Corporation). 2000. “Paths Out of Poverty.” Washington, D.C.

    Google Scholar 

  • Johnson, Simon, Daniel Kaufmann, and Andrei Shleifer. 1997. “The Unofficial Economy in Transition.” Brookings Papers on Economic Activity 2: 159–239.

    Article  Google Scholar 

  • Johnson, Simon, Daniel Kaufmann, and Pablo Zoido-Lobatón. 1999. “Corruption, Public Finances, and the Unofficial Economy.” Policy Research Working Paper 2169. World Bank Institute, Washington, D.C.

    Google Scholar 

  • Kaufmann, Daniel, Massimo Mastruzzi, and Diego Zavaleta. 2002. “Sustained Macroeconomic Reforms with Meager Growth: A Governance Puzzle in Bolivia.” In Dani Rodrik, ed., Comparative Perspectives on Growth of Nations. Cambridge, Mass.: National Bureau of Economic Research and Harvard University (forthcoming).

    Google Scholar 

  • Klitgaard, Robert. 1988. Controlling Corruption. Berkeley: University of California Press.

    Google Scholar 

  • Levy, Brian. 1993. “Obstacles to the Development of Indigenous Small and Medium Enterprises in Sri Lanka and Tanzania: An Empirical Assessment.” World Bank Economic Review 7(1): 65–83.

    Article  Google Scholar 

  • Mauro, Paulo. 1997. “Why Worry About Corruption?” Economic Issues No. 6. International Monetary Fund, Washington, D.C. http://www.imf.org/external/pubs/ft/issues6/issue6.pdf

    Google Scholar 

  • Roberts, Mark, and James Tybout, eds. 1996. Industrial Evolution in Developing Countries: Micro Patterns of Turnover, Productivity and Market Structure. New York: Oxford University Press.

    Google Scholar 

  • Rose-Ackerman, Susan. 1978. Corruption: A Study in Political Economy. New York: Academic Press.

    Google Scholar 

  • Schiffer, Mirjam, and Beatrice Weder. 2001. “Firm Size and the Business Environment: Worldwide Survey Results.” IFC Discussion Paper 43. Washington, D.C.

    Google Scholar 

  • Shleifer, Andrei, and Robert W. Vishny. 1994. “Politicians and Firms.” Quarterly Journal of Economics 109 (November): 995–1025.

    Google Scholar 

  • Stone, Andrew H.W. 1992. “Listening to Firms: How to Use Firm-Level Surveys to Assess Constraints on Private Sector Development.” Policy Research Working Paper 923. World Bank, Policy Research Department, Washington, D.C.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2003 The International Bank for Reconstruction and Development / The World Bank

About this chapter

Cite this chapter

Batra, G., Kaufmann, D., Stone, A.H.W. (2003). The Firms Speak: What the World Business Environment Survey Tells Us about Constraints on Private Sector Development. In: Fields, G.S., Pfeffermann, G. (eds) Pathways Out of Poverty. Springer, Dordrecht. https://doi.org/10.1007/978-94-010-0009-3_9

Download citation

  • DOI: https://doi.org/10.1007/978-94-010-0009-3_9

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-0-8213-5404-9

  • Online ISBN: 978-94-010-0009-3

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics