Improving the Business Climate: Theory, Evidence, and Policy
Guest Editor: Norman Loayza (World Bank)

The business climate plays a crucial role in fostering economic growth, encouraging entrepreneurship, and creating jobs. A favorable business climate not only supports the growth of firms but also contributes to broader development goals, including poverty reduction, inclusive prosperity, and formalization (World Bank, 2020). Formalizing workers and firms is a critical step toward expanding economic inclusion, improving labor conditions, and increasing tax revenues. Yet, many countries face persistent challenges in improving their business environment due to regulatory inefficiencies, lack of access to credit, corruption, and infrastructure deficits (Djankov et al., 2002; Loayza et al., 2023). Addressing these issues requires a regulatory framework that finds a balance between the costs and benefits of regulation, ensuring that interventions enhance efficiency without imposing excessive burdens on businesses.

In parallel, the investment climate is critical to economic growth and prosperity, influencing decisions on capital allocation, firm expansion, and innovation (Alesina et al. 2005). A stable and predictable investment climate fosters long-term economic resilience and attracts both domestic and foreign investment. Policies that promote transparency, strengthen property rights, and streamline administrative processes are essential in creating an environment conducive to sustainable development.

This Special Issue seeks to advance understanding of how reforms in the business and investment climate can drive economic development at various levels. While global and national perspectives are well-documented (World Bank, 2023; Doing Business Reports, 2005–2021), this issue places particular emphasis on sub-national and regional approaches, innovative methodologies, and policy frameworks to enhance the business environment in Latin American countries. We aim to provide a platform for robust, evidence-based research that informs policy design and implementation in diverse contexts.

Topics of Interest

We invite conceptual, methodological, and empirical papers addressing, but not limited to, the following questions:

● What are the most critical barriers to improving the business and investment climate in Latin American countries?

● How do reforms in key areas such as regulatory frameworks, taxation, and property rights affect business formation and economic growth?

● In what ways can technological innovation and digitalization improve the efficiency and transparency of business-related services?

● How do sub-national variations in the business climate influence economic outcomes across regions within a country?

● How can public-private partnerships enhance the implementation of business climate reforms?

● What lessons can be learned from successful and unsuccessful reform experiences?

● How does the business and investment affect gender equality, environmental sustainability, and inclusiveness in economic participation?

● What are the most effective strategies to promote the formalization of businesses and workers, and what impact do they have on economic performance?

● What policies can ensure regulatory quality that balances the costs and benefits of regulation, fostering growth while minimizing unintended consequences?

Keywords

Business Environment; Investment Climate; Regulatory Reform; Economic Development; Entrepreneurship; Public-Private Partnerships; Sub-National Analysis; Policy Innovation; Transparency and Governance; Inclusive Growth; Digitalization; Formalization.

Manuscript submission information:

● Submissions open: March 4th, 2025
● Submissions close: June 30th, 2025
● You can submit your paper here 
● To download this announcement PDF version, please click here.

Submission Guidelines

Papers should include a title page, an abstract, introduction, methodology, results, discussion, and conclusion sections. Papers will undergo a double-blind peer review process, and they should adhere to the formatting guidelines of the Economía Journal.

About the Guest Editor 

Norman Loayza is Director of the Global Indicators Group in the Development Economics Vice Presidency of the World Bank. He currently supervises the flagship data and reports, Women, Business and the Law, Enterprise Surveys, Global and Subnational Business Ready, the successor to the discontinued Doing Business. He joined the World Bank in 1994 and served most of his career in the Development Research Group. His research covers various areas of economic and social development, and it has widely been cited in academic and policy circles informing numerous country-level reform programs. Mr. Loayza holds a Ph.D. in Economics from Harvard University. 
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References

● Alesina, A., Ardagna, S., Nicoletti, G., & Schiantarelli, F. (2005). Regulation and Investment. Journal of the European Economic Association, 3(4), 791-825.

● Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). The Regulation of Entry. Quarterly Journal of Economics, 117(1), 1-37.

● Doing Business Reports (2005–2021). World Bank Group.

● Loayza, N., & Raddatz, C. (2023). Business Climate Reforms and Economic Outcomes: Evidence from Emerging Markets. World Bank Policy Research Working Papers.

● World Bank (2020). Doing Business 2020: Comparing Business Regulation in 190 Economies. Washington, DC: World Bank.

● World Bank (2023). Business Ready: Improving the Business Environment for Development. Washington, DC: World Bank.