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Business Regulation in South Asia and the Belt and Road Initiative (English)

This study provides a comprehensive comparative analysis of the business environment in six South Asian countries, Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka, to examine whether business regulatory requirements in these countries hinder them from fully benefiting from BRI project spillovers. The analysis is based on available secondary data sources and responses to a structured questionnaire sent to selected private sector participants in each of these countries, eliciting information on the law, regulation, and practice in a wide range of thematic areas influencing the overall business and regulatory environment. Survey respondents identified nine key themes as the most challenging for the private sector, including from the perspective of potential benefits from BRI-induced opportunities. The thematic areas are: (a) licensing and inspection requirements; (b) regulations and practices governing foreign investment; (c) access to resources such as land, credit, and electricity; (d) regulatory restrictions on the operation of foreign firms, such as local content requirements and currency repatriation; (e) regulatory governance and corruption and state capture; (f) predictability and quality of the regulatory framework, especially corporate taxation; (g) government procurement laws and practice; (h) effective dispute settlement and grievance mechanisms; and (i) trade and customs regulations. The identified thematic areas promote connectivity and regional integration and thus are particularly relevant from the BRI perspective. Improvements along different dimensions of these thematic areas will likely enable countries in the region to gain from BRI-induced opportunities.

Details

  • Author

    Ghossein,Tania, Shingal,Anirudh, Ereshchenko,Viktoriya, Eknath,Varun, Khallouf,Laure Marie Sophie, Hutchcroft,Ian Charles Labra, Zouaidi,Marwane

  • Document Date

    2020/11/24

  • Document Type

    Report

  • Report Number

    154570

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    South Asia,

  • Region

    South Asia,

  • Disclosure Date

    2020/11/25

  • Disclosure Status

    Disclosed

  • Doc Name

    Business Regulation in South Asia and the Belt and Road Initiative

  • Keywords

    regional and global value chains; state bank of pakistan; agreement on government procurement; small and medium enterprise; private limited liability company; corruption in tax administration; preference for domestic suppliers; Goods and Service Tax; efficient use of resource; information and communication technology; Business Regulation; construction permit; trade and investment; major infrastructure investment; private sector participant; investment in plant; entry into market; access to land; business environment issues; per capita basis; per capita income; barrier to entry; thematic area; lack of transparency; growth and development; investment tax credit; preferential trade agreement; foreign direct investment; private sector experts; high entry barrier; access to finance; Extended Term Consultant; Access to Electricity; return on investment; Computable General Equilibrium; commitment to liberalization; term of productivity; income growth rate; property tax revenue; recent studies show; mitigating climate change; public sector entity; foreign service providers; formal financial institution; take time; minimum capital requirement; new market opportunity; allegations of corruption; inadequate bankruptcy law; financial sector regulation; global competitiveness index; national policy framework; agricultural labor force; business environment constraints; inclusive economic growth; import of goods; export of goods; credit market regulation; method of procurement; tax administration system; regulatory environment; license requirement; local content; regulatory governance; business license; Job Creation; survey respondent; regulatory requirement; regulatory restriction; partner country; Dispute Settlement; Business Registration; corporate taxation; International Trade; SME sector; business entry; transaction cost; inspection requirement; public safety; complementary reform; procurement process; customs regulation; skill development; Public-Private Partnership; comparative analysis; secondary data; grievance mechanism; new entrant; state capture; building permit; foreign investor; currency convertibility; positive relationship; preferential treatment; Technology Transfer; regional connectivity; commercial dispute; research show; investment climate; private enterprise; production capabilities; micro enterprise; domestic investment; agricultural workforce; connectivity infrastructure; technological frontier; product technology; Capital Investments; skill category; Economic Policy; reduce trade; demonstration effect; good performance; long-term growth; land bridge; present study; business exit; increasing trade; primary beneficiaries; rural transportation infrastructure; productivity growth; Public Services; efficient infrastructure; power shortage; increase growth; input use; effective regulatory; global work; local skills; border management; subsidiary right; potential demand; sectoral composition; adequate regulatory; real output; positive impact; empirical evidence; regulatory institution; market access; infrastructure industry; public official; aviation services; Aviation Security; construction spending; aviation industry; infrastructure sector; Energy Sector; allocation criterion; operational requirement; average values; income generation; business survey; new job; Grey Economy; license procedure; enterprise survey; administrative level; online system; regulatory response; construction company; ensuring compliance; enhancing compliance; enforcement mechanism; safety standard; positive outcome; administrative burden; online business; cost-benefit analysis; financial activities; Natural Resources; public health; capital constraint; license restriction; cross-country data; overall ranking; Doing Business Reports; External Finance; comparator country; labor regulation; market competition; aggregate productivity; premier institution; employment data; data availability; federal country; large business; Trade Policies; time limit

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Citation

Ghossein,Tania Shingal,Anirudh Ereshchenko,Viktoriya Eknath,Varun Khallouf,Laure Marie Sophie Hutchcroft,Ian Charles Labra Zouaidi,Marwane

Business Regulation in South Asia and the Belt and Road Initiative (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/989201606284337046/Business-Regulation-in-South-Asia-and-the-Belt-and-Road-Initiative