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December 15, 2015
On a global comparison, business regulation in the EU is quite transparent. Looking at four basic areas that affect firms’ operations, i.e. fees for starting a business, transferring property, construction permits and getting access to electricity, it is easy to access information on these fees. While there are some differences across the four categories – finding out about fees to start a business is easiest while checking on charges to obtain building permits can be trickier – the overall level of transparency is quite high. [more]
PROD0000000000448387 1   |    15 December 2015Chart in Focus December 15, 2015 Transparency of business regulation around the world Author www.dbresearch.com Deutsche Bank Research Management Stefan Schneider Patricia Wruuck patricia.wruuck@db.com On a global comparison, business regulation in the EU is quite transparent. Looking at four basic areas that affect firms’ operations, i.e. fees for starting a business, transferring property, construction permits and getting access to electricity, it is easy to access information on these fees. While there are some differences across the four categories – finding out about fees to start a business is easiest while checking on charges to obtain building permits can be trickier – the overall level of transparency is quite high. This means that information relevant to businesses is mostly public, either available via public notices or that it can be accessed online and there is no need to individually request it from officials.[1] Of course ease of access to information about fees in these particular areas is but one way to look at regulatory transparency. Nevertheless, it can provide some indication about the different environments in which businesses operate across the globe. Greater transparency is good news for firms because it generally means lower costs for collecting information and facilitates business planning. For the economy at large, transparency should help to reduce barriers to market entry, foster competition and promote more efficient use of resources. In addition, it can also help to induce greater compliance with rules. Information about business regulation is generally better in high income countries, also reflecting the greater capacity of their administrative systems, even though there are some notable exceptions of countries that score high on business regulation transparency despite lower per capita income, such as Tanzania or Georgia. Also, countries’ domestic institutions are linked with the levels of public information provision on business regulation, i.e. democracies tend to be more transparent. Recent research finds similar patterns for (economic) data dissemination in general. Finally, some evidence suggests that greater fee disclosure tends to go hand in hand with better regulation.[2] For further information on the quality of business regulation in the euro area see Research Briefing "The business environment in the eurozone: Why it is worth paying attention to the details" [1] The World Bank assessed the transparency of public bodies that implement business regulation. It considered information to be easily accessible if it can be obtained online or via public notices. Information is considered not easily available if it can only be obtained by meeting with an official. Data on the Deutsche Bank Research Transparency of business regulation around the world 2   |    15 December 2015Chart in Focus © Copyright 2017. Deutsche Bank AG, Deutsche Bank Research, 60262 Frankfurt am Main, Germany. All rights reserved. When quoting please cite “Deutsche Bank Research”. The above information does not constitute the provision of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do not necessarily correspond to the opinions of Deutsche Bank AG or its affiliates. Opinions expressed may change without notice. Opinions expressed may differ from views set out in other documents, including research, published by Deutsche Bank. The above information is provided for informational purposes only and without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the information given or the assessments made. In Germany this information is approved and/or communicated by Deutsche Bank AG Frankfurt, licensed to carry on banking business and to provide financial services under the supervision of the European Central Bank (ECB) and the German Federal Financial Supervisory Authority (BaFin). In the United Kingdom this information is approved and/or communicated by Deutsche Bank AG, London Branch, a member of the London Stock Exchange, authorized by UK’s Prudential Regulation Authority (PRA) and subject to limited regulation by the UK’s Financial Conduct Authority (FCA) (under number 150018) and by the PRA. This information is distributed in Hong Kong by Deutsche Bank AG, Hong Kong Branch, in Korea by Deutsche Securities Korea Co. and in Singapore by Deutsche Bank AG, Singapore Branch. In Japan this information is approved and/or distributed by Deutsche Securities Inc. In Australia, retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial product referred to in this report and consider the PDS before making any decision about whether to acquire the product. accessibility of regulatory information was collected Jan. – Aug. 2012. For further information see http://www.doingbusiness.org/data/transparency [2] See World Bank (2013): “How transparent is business regulation around the world? as well as Hollyer, Vreeland and Rosendorff on institutions and transparency: HRV transparency project http://0001c70.wcomhost.com/wp2/