The Importance Of Administrative Barriers In Developing Countries

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Administrative barriers play important role for companies both foreign and local because bureaucracy may take too much time and costs to accomplish all necessary procedures to establish and operate business. As a result potential investors may decide to cancel investment projects or relocate to other countries. The objective of this paper was to study the importance of administrative barriers in a set of 32 developing countries, including 20 African and 7 Eastern and Central Europe countries with by alphabetical order (the year of the data collection is in parenthesis): Argentina (1999), Armenia (2000), Bulgaria (2000), Burkina Faso (2000), Chile (1999), Czech Republic (1999), Egypt (1999), Ghana (1995), India (1999), Jordan (1998), Kenya (1999), Latvia (1999), Lesotho (1997), Lithuania (1999), Madagascar (1998), Malawi (2000), Mali (1998), Mauritania (1999), Morocco (1999), Mozambique (1996), Nigeria (2001), Romania (2000), Slovenia (2000), Senegal (1999), South Africa (1999), Swaziland (1997), Tanzania (1997), Tunisia (1999), Turkey (2001), Uganda (1997), Zambia (1999), Zimbabwe (1999). Researchers used 26 core administrative procedures that are generally required to set up and operate a business. The researchers used them for cross countries comparisons. These procedures were grouped into three categories: 1) Entry approvals; 2) Access to land, site development, and utility connections; 3) Operational requirements. Data on each country was collected at one point in time,

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