Research on China's business environment evaluation system based on the World Bank

Abstract

At a time when global competition is becoming increasingly fierce, the construction of “business environment” has become the focus of attention of all countries in the world, and it is an important indicator for conducting investment and financing activities. Therefore, the institutions and systems for evaluating the “business environment” have emerged. This paper draws on the World Bank's Doing Business Report, combined with China's market and political environment, to establish a set of business environment evaluation system that suits China's national conditions, so that countries and enterprises can be measured and referenced when investing and financing. 1. The concept of business environment Since 2003, the World Bank has published 13 “Business Environment Reports” o measure and compare relevant economic indicators of countries or regions. The World Bank has reported that Doing Business's “business environment” focuses on the rule of law environment (legislative and regulatory) in which SMEs operate in the local area. The broad “business environment” is the total factor environment of enterprise management. The narrow business environment can be divided into business “hard” environment and business “soft” environment, investment business environment and local business environment according to different classification criteria. According to the types of elements it contains, it can be divided into a “hard” environment for business and a “soft” environment for business. Among them, the “hard” environment for business is mainly concerned with the natural endowments, infrastructure and so on required by the market participants. The tangible elements, while the “soft” environment for business is mainly focused on the macroeconomic conditions in the economic process of the market, the educational level of the population, the tax rate, the judicial efficiency, and even the intangible elements of the political system. The investment business environment focuses on the level of friendship (especially policy-friendliness) of foreign companies in relevant countries and regions, and the convenience conditions for their local operations; while the local business environment focuses on relevant countries and regions. The business environment (especially the institutional environment) created by companies in the country and the region. 2. The World Bank Business Environment Assessment System The World Bank established the Doing business team in 2001 to build a business environment indicator system. In 2003, the first Global Business Environment Report (Doing business in 2004) was released, and 14 evaluation reports have been released this year. The evaluation index system also gradually improved from the first five primary indicators (starting enterprises, employee hiring and dismissal, contract protection, access to credit and corporate closure), 20 second level indicators, to the current 11 primary indicators, 43 second level indicators . 2.1 The World Bank Business Environment Evaluation Index System From the perspective of the enterprise life cycle, the World Bank's research takes the daily operation of the enterprise as the core, and divides the whole life cycle of the enterprise into four stages: daily operation, start-up, site selection, financing, and fault-tolerant processing. The daily operation includes two indicators, such as cross-border trade and taxation. The start-up phase 4th International Conference on Financial Innovation and Economic Development (ICFIED 2019) Copyright © 2019, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). Advances in Economics, Business and Management Research, volume 76