How accurate are the Doing Business indicators? A Pacific Island case study

Abstract

While there have been several attempts to measure the investment climate, by far the most widely recognised measure is the World Bank's Doing Business indicators (DBIs), ranking some 200 countries on their ease of doing business. Methodological criticisms have failed to dent their stature. This article is based on case studies of Pacific Island countries that demonstrate that identical reforms in different countries are assigned rankings so widely divergent that they call into question the validity of the DBIs. The findings cast doubt on targeting improved DBI rankings as a policy goal. Our case studies are the first to provide detailed country evidence supporting the criticisms levelled against the DBIs on conceptual grounds.