The Ease of Doing Business Rank (EODB) is a measure of an economy’s position to the best regulatory practices.

 The
EODB study tries to capture the experience of small and mid-sized companies in a country with their regulators, by
measuring the time, costs and red tape they deal with.

The goal of the World Bank in coming up with Doing Business score every year is to provide an objective basis for
understanding and improving the regulatory environment for business around the world.

More than 48,000 professionals in 190 economies have assisted in providing the data that inform the Doing Business
indicators.

The Ease of Doing Business Rank is based on 10 parameters relating to starting and doing business in a country.

Ease of starting a business.

Dealing with construction permits.
Getting electricity for the same.
Registering your property.
Getting credit for your business.
Protecting minority investors.
Paying taxes.
Trading across borders.
Enforcing contracts.
Resolving insolvency.

It is computed by aggregating the distance to frontier scores of different economies. The distance to frontier score
uses the ‘regulatory best practices’ for doing business as the parameter and benchmark economies according to that
parameter.

For each of the indicators that form a part of the statistic ‘Ease of doing business,’ a distance to frontier score is
computed and all the scores are aggregated. The aggregated score becomes the Ease of doing business index.

How Doing Business collects and verifies the data?

Each Doing Business topic measures a different aspect of the business regulatory environment. The scores and
associated rankings of an economy can vary, sometimes significantly, across topics. The average correlation
coefficient between the 10 topics included in the aggregate ease of doing business score is 0.50, and the coefficients
between two topics range from 0.32 (between getting credit and paying taxes) to 0.68 (between dealing with
construction permits and getting electricity). These correlations suggest that economies rarely score universally well
or universally badly on Doing Business topics.