**<u>Table 3:</u>** <u>GDP per capita growth – the Doing Business ranking (2)</u>

|<br>Model|<br>(9)|<br>(10)|<br>(11)|<br>(12)|<br>(13)|(14)|(15)|(16)|
|---|---|---|---|---|---|---|---|---|
|Dep. Variable|Average|GDPper ca|pitagrowth||||||
|# Years|5|10|5|10|5|10|5|10|
|Sample|All<br>|All<br>|All|All<br>|Rich|Poor<br>|Rich|Poor<br>|
|DBI|3.833**<br>(1.812)|4.753**<br>(1.951)|1.680<br>(1.702)|2.936*<br>(1.743)|-2.769<br>(2.048)|8.029***<br>(2.790)|0.852<br>(2.136)|6.798***<br>(1.835)|
|initial log<br>GDP/cap|-0.424<br>(0.265)|-0.562**<br>(0.249)|-0.642**<br>(0.311)|-0.683**<br>(0.305)|-0.603<br>(0.450)|0.128<br>(0.465)|-0.968**<br>(0.428)|-0.245<br>(0.456)|
|initial deviation<br>fr. GDP deflator|0.119***<br>(0.040)|0.004<br>(0.008)|0.116***<br>(0.036)|0.002<br>(0.007)|0.067*<br>(0.035)|0.074<br>(0.046)|0.041<br>(0.027)|0.001<br>(0.006)|
|Civil war|0.941<br>(0.689)|0.413<br>(0.598)|0.464<br>(0.771)|0.290<br>(0.612)|1.085*<br>(0.650)|0.915<br>(1.256)|-1.651<br>(1.355)|0.249<br>(0.788)|
|FDI<br> (%GDP)|-0.003<br>(0.007)|-0.000<br>(0.005)|-0.004<br>(0.007)|-0.000<br>(0.005)|-0.008<br>(0.005)|0.120**<br>(0.055)|0.000<br>(0.004)|0.196<br>(0.141)|
|Exports<br>(%GDP)|0.0201**<br>(0.009)|0.0200<br>(0.0124)|0.0202**<br>(0.008)|0.0197*<br>(0.0118)|0.022***<br>(0.006)|0.014<br>(0.023)|0.020**<br>(0.008)|-0.004<br>(0.090)|
|Gov. cons<br>(%GDP)|-0.063<br>(0.054)|-0.102**<br>(0.047)|-0.056<br>(0.055)|-0.095*<br>(0.053)|-0.063<br>(0.068)|-0.069<br>(0.048)|-0.117<br>(0.096)|-0.097***<br>(0.037)|
|Africa|||-2.705***<br>(0.615)|-1.968***<br>(0.656)|-1.053<br>(0.941)|-2.000***<br>(0.662)|-0.329<br>(1.406)|-1.996***<br>(0.728)|
|Latin America|||-1.134**<br>(0.546)|-1.011**<br>(0.429)|-0.971<br>(0.670)|-2.344***<br>(0.878)|-1.221**<br>(0.589)|-2.049***<br>(0.721)|
|East Asia|||0.937<br>(1.271)|0.487<br>(1.295)|0.443<br>(0.531)|1.635<br>(2.359)|0.155<br>(0.905)|1.624<br>(2.324)|
|Constant|5.503***|5.838***|9.049***|8.249***|11.13***|1.786|12.85***|4.225|
||(1.556)|(1.259)|(1.910)|(1.638)|(2.974)|(2.712)|(2.326)|(2.896)|
|Observations|162|162|162|162|85|77|85|77|
|R-squared|0.157|0.173|0.265|0.238|0.349|0.476|0.351|0.453|

Notes: Robust standard errors in parentheses, *** p<0.01, ** p<0.05, * p<0.1 Yet what reforms should governments focus on if they try to maximize the impact of reforms on economic performance? To answer this question, the analysis of model 6 in table 2 was repeated for each individual one of the nine indicators.<sup>12</sup> The specification of model 6 was chosen with a view to maximize country coverage. Generally, however, the results uphold including other controls, much in line with the gist of tables 2 and 3.

To simplify the presentation, the results from the analyses are represented graphically in figure 1. Diamonds represent the coefficient estimate whilst the horizontal lines indicate 95% confidence intervals around the coefficients. The numbers on the x-axis correspond to the indicators listed below

> 12 In other words, 10-year average GDP per capita growth was regressed on each of the 9 indicators from ‘Starting a Business’ to ‘Closing a Business’ (c/f table 1), as well as initial GDP per capita, the deviation from the initial GDP deflator and the civil war dummy.

11