the methodology developed by Djankov _et al._ (2008a). The indicator covers 3 dimensions of investor protections: transparency of related-party transactions, liability for selfdealing and shareholders’ ability to sue officers and directors for misconduct.

- The paying taxes indicator measures the amount of taxes and mandatory contributions that a medium-size company must pay in a given year and assesses the administrative burden associated to making tax payments and contributions. The indicator is based on Djankov _et al._ (2010a). The total tax rate measures the amount of taxes and mandatory contributions borne by the business in the second year of operation, expressed as a share of commercial profit. This is the sum of all the different taxes and contributions payable after accounting for allowable deductions and exemptions.

- The trading across borders indicator measures the time and cost and the number of required documents associated with exporting and importing a standardized cargo of goods by sea transport. The indicator is based on Djankov _et al._ (2010b). All documentation required for clearance by relevant agencies – including government ministries, customs, port authorities and other control agencies – is covered. The time for exporting and importing is recorded in calendar days and goes from the moment each procedure is initiated until its completion. Sea transportation time is not included. Cost measures the fees levied on a 20-foot container in U.S. dollars.

- The enforcing contracts indicator measures the efficiency of the judicial system in resolving a commercial dispute. The indicator is based on Djankov _et al._ (2003) and follows the step-by-step evolution of a commercial sale dispute before local courts and factors the total time, cost and number of procedures needed in each country to obtain and enforce the court’s judgment. Cost is recorded as a percentage of the claim, assumed to be equivalent to 200% of income per capita.

- The resolving insolvency indicator measures the time, cost and outcome of insolvency proceedings involving domestic companies. The methodology of the indicator relies on the work by Djankov _et al._ (2008b). The time that takes for creditors to recover their credit is recorded in calendar years and ranges from companies’ default until the payment of the money owed to the bank. The cost of the proceedings is recorded as a percentage of the value of the debtor’s estate. The recovery rate is recorded as cents on the dollar recouped by creditors through reorganization, liquidation or debt enforcement (foreclosure) proceedings.

# _Different types of indicators: complexity versus institutions_

Doing Business indicators can be divided into two sub-groups based on the nature of what they measure. The first group of indicators relate to the strength of legal institutions relevant to the regulation of business. They focus on the legal and regulatory framework for getting credit, protecting investors, enforcing contracts and resolving insolvency. For example, they look at company laws and record disclosure requirements for related-party transactions. Or they look at civil laws and record the number of procedures necessary to resolve a commercial sale dispute 4