Effect of Ease of Doing Business to Economic Growth among Selected Countries in Asia

Economic activity requires a streamlined regulatory environment and effectual policies that are transparent and accessible to all. The study aimed to explain the effect of ease of doing business to economic growth among selected economies in Asia for the year 2014. The study covered 29 economies in East Asia, Southeast Asia, and South Asia. Ease of doing business is determined by the ten Doing Business indicators (DBI) of the World Bank. In the study, Gross Domestic Product (GDP) was used as the proxy variable for economic growth. Descriptive research was the research design used. Multiple regression determined the effect of doing business to economic growth. Compared to other economies, Singapore has the best regulatory performance. It achieved the easiest to do business to five indicators, namely, Starting Business, Registering Property, Protecting Investors, Trading Across Borders, and Enforcing Contracts. In addition, China showed the highest economic growth. The study found out that the variations in ease of doing business was explained by dealing with construction permits, getting credit, registering property and trading across borders. Dealing with construction permits and getting credit have negative effect to Gross Domestic Product while registering property and trading across borders have positive effect. Trading across borders greatly affect gross domestic product among selected countries in Asia. The research proposed inputs to policy which may increase the awareness of local government units of different economies on the simplification of the policies of the different components used in measuring doing business.

Keywords – Asia, doing business, economic growth, Gross Domestic Product