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Measuring Competitiveness & Business Environment in Southeast Europe: A Review of Indicators

This presentation provides an overview of commonly used indicators to measure competitiveness and improve the business environment in Southeast Europe. It discusses the advantages and disadvantages of indicators such as the Global Competitiveness Index, Doing Business, Business Environment and Enterprise Performance Survey, Investment Reform Index, Corruption Perception Index, Transition Indicators, and Worldwide Governance Indicators.

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Measuring Competitiveness & Business Environment in Southeast Europe: A Review of Indicators

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  1. INTERNATIONAL CONFERENCE ON REGIONAL MARKET, DEVELOPMENT OF STATISTICS AND INVESTMENT OPPORTUNITIES Business Environment Indicators with special emphasisON SOUTHEAST EUROPESarajevo, 6 November 2017. Eldin Mehić

  2. Goal • The aim of the presentation is to present an overview of the most commonly used indicators to measure competitiveness and improving the business environment with a special focus on Southeastern Europe and consider the advantages and disadvantages of their use. • The focus is on the following indicators: World Economic Forum Global Competitiveness Index (GCI), the World Bank's Doing Business, World Bank/EBRD Business Environment and Enterprise Performance Survey (BEEPS), OECD Investment Reform Index (IRI) Corruption Perception Index (CPI) EBRD Transition Indicators, World Bank Worldwide Governance Indicators. • Each of these indicators is discussed from the viewpoint of the availability of data for the country, period for publications, objectives and methodology applied in the creation of individual indicators. • Contribution of analysis: a critical review of the advantages and disadvantages of using certain indicators with a view to examining the need for creating new composite indicators to measure competitiveness and improve the business environment in the countries which are studied.

  3. Introduction • Business environment refers to all the factors and their effects, which are outside the company, and which either prevent or favor the development of the business. • It includes features of the regulatory, legal, economic, financial, institutional system of a country, community or global economic system. • Business Environment - a key determinant of progress and growth of a country. • In the literature they encounter numerous indicators that measure the competitiveness of the business environment of individual countries from different perspectives using different methodology. • It is assumed that the business environment is closely linked to the economic performance of countries. • one-dimensional (individual) or composite (combine individual indicators), indicators of business environment

  4. World Economic Forum Global Competitivene ss Index (GCI)

  5. Doing Business

  6. BusinessEnvironmentand EnterprisePerformanceSurvey(BEEPS)

  7. OECDInvestmentReform Index(IRI)

  8. Corruption Perception Index (CPI)

  9. EBRD Transition Indicators

  10. WB - Worldwide Governance Indicators (WGI)

  11. Finishing considerations • the presence of the advantages and disadvantages of the use of certain indicators • need to develop new indicators for business environment ??? • one dimensionalset indicator or the composite indicator ??? • Methodology: based on secondary or primary data?; sectoral approach? • problem weighting importance of certain characteristics/ dimensions of business environment • users?

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