Republic of El Salvador | Score-Trading across borders (DB16-20 methodology)
Doing Business measures the time and cost associated with three sets of procedures of exporting and importing goods —documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The score for trading across borders is the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. It is computed based on the methodology in the DB16-20 studies.
Development relevance: Access to international markets plays an important role in an economy’s development. Logistics and freight expenses, customs administrative fees and border costs have become important for small traders. While the significance of small and medium-size enterprises (SMEs) in the overall economy is widely recognized, until recently SMEs were largely absent from trade debates. Along with fixed entry costs, cumbersome border procedures and standards are major hurdles for SMEs. Given that SMEs account for the majority of firms and the vast majority of employment worldwide, encouraging government policies aimed at facilitating the participation of SMEs in trade is essential.
Limitations and exceptions: The Doing Business methodology has five limitations that should be considered when interpreting the data. First, for most economies the collected data refer to businesses in the largest business city and may not be representative of regulation in other parts of the economy. Second, the data often focus on a specific business form—generally a limited liability company (or its legal equivalent) of a specified size—and may not be representative of the regulation on other businesses. Third, transactions described in a standardized case scenario refer to a specific set of issues and may not represent the full set of issues that a business encounters. Fourth, the measures of time involve an element of judgment by the expert respondents. When sources indicate different estimates, the time indicators reported in Doing Business represent the median values of several responses given under the assumptions of the standardized case. Finally, the methodology assumes that a business has full information on what is required and does not waste time when completing procedures. In practice, completing a procedure may take longer if the business lacks information or is unable to follow up promptly. Alternatively, the business may choose to disregard some burdensome procedures. For both reasons the time delays reported in Doing Business would differ from the recollection of entrepreneurs reported in the World Bank Group Enterprise questionnaires or other firm-level questionnaires..
Statistical concept and methodology: Data are collected by the World Bank Group with a standardized questionnaire that uses a simple business case to ensure comparability across economies and over time—with assumptions about the legal form of the business, its size, its location and nature of its operation. Questionnaires are administered to more than 13,800 local experts, including lawyers, business consultants, accountants, freight forwarders, government officials and other professionals routinely administering or advising on legal and regulatory requirements.
The Doing Business data are based on a detailed reading of domestic laws, regulations and administrative requirements as well as their implementation in practice as experienced by private firms. The report covers 190 economies—including some of the smallest and poorest economies, for which little or no data are available from other sources. The data are collected through several rounds of communication with expert respondents (both private sector practitioners and government officials), through responses to questionnaires, conference calls, written correspondence and visits by the team. Doing Business relies on four main sources of information: the relevant laws and regulations, Doing Business respondents, the governments of the economies covered and the World Bank Group regional staff.
Publisher
The World Bank
Origin
Republic of El Salvador
Records
17
Source
Republic of El Salvador | Score-Trading across borders (DB16-20 methodology)
Doing Business measures the time and cost associated with three sets of procedures of exporting and importing goods —documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The score for trading across borders is the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. It is computed based on the methodology in the DB16-20 studies.
Development relevance: Access to international markets plays an important role in an economy’s development. Logistics and freight expenses, customs administrative fees and border costs have become important for small traders. While the significance of small and medium-size enterprises (SMEs) in the overall economy is widely recognized, until recently SMEs were largely absent from trade debates. Along with fixed entry costs, cumbersome border procedures and standards are major hurdles for SMEs. Given that SMEs account for the majority of firms and the vast majority of employment worldwide, encouraging government policies aimed at facilitating the participation of SMEs in trade is essential.
Limitations and exceptions: The Doing Business methodology has five limitations that should be considered when interpreting the data. First, for most economies the collected data refer to businesses in the largest business city and may not be representative of regulation in other parts of the economy. Second, the data often focus on a specific business form—generally a limited liability company (or its legal equivalent) of a specified size—and may not be representative of the regulation on other businesses. Third, transactions described in a standardized case scenario refer to a specific set of issues and may not represent the full set of issues that a business encounters. Fourth, the measures of time involve an element of judgment by the expert respondents. When sources indicate different estimates, the time indicators reported in Doing Business represent the median values of several responses given under the assumptions of the standardized case. Finally, the methodology assumes that a business has full information on what is required and does not waste time when completing procedures. In practice, completing a procedure may take longer if the business lacks information or is unable to follow up promptly. Alternatively, the business may choose to disregard some burdensome procedures. For both reasons the time delays reported in Doing Business would differ from the recollection of entrepreneurs reported in the World Bank Group Enterprise questionnaires or other firm-level questionnaires..
Statistical concept and methodology: Data are collected by the World Bank Group with a standardized questionnaire that uses a simple business case to ensure comparability across economies and over time—with assumptions about the legal form of the business, its size, its location and nature of its operation. Questionnaires are administered to more than 13,800 local experts, including lawyers, business consultants, accountants, freight forwarders, government officials and other professionals routinely administering or advising on legal and regulatory requirements.
The Doing Business data are based on a detailed reading of domestic laws, regulations and administrative requirements as well as their implementation in practice as experienced by private firms. The report covers 190 economies—including some of the smallest and poorest economies, for which little or no data are available from other sources. The data are collected through several rounds of communication with expert respondents (both private sector practitioners and government officials), through responses to questionnaires, conference calls, written correspondence and visits by the team. Doing Business relies on four main sources of information: the relevant laws and regulations, Doing Business respondents, the governments of the economies covered and the World Bank Group regional staff.
Publisher
The World Bank
Origin
Republic of El Salvador
Records
17
Source