Creating

52 DOING BUSINESS IN 2006
Notes
1. Matthew 9: 11.
2. Engelschalk (2004).
3. The survey was conducted in partnership with PricewaterhouseCoopers,
using a methodology developed in an
ongoing research project by Mihir Desai, Caralee McLiesh,
Rita Ramalho and Andrei Shleifer.
4. A common method for assessing tax rates is the marginal
effective tax rate (METR) method, which estimates the tax
payable resulting from investing one more unit of capital,
or hiring one more worker, or producing one more unit of
output. See the Data notes for a description of the main differences
between the METR and Doing Business methods.
5. World Bank Investment Climate Survey database, available
at http://rru.worldbank.org.
6. World Bank (2004b).
7. Fjeldstad and Rakner (2003).
8. Not all cities in the United States have a municipal business
tax. In addition, in several states the tax base is the same for
federal and state income taxes.
9. Georgia Business Council interview.
10. FIAS (2004).
11. See, for example, Tanzi and Zee (2000).
12. Moore (2005).
13. World Bank (1991).
14. Bird and Oldman (2000) and Tan, Pan and Lim (2005).
15. Bird (2003).
16. A similar result holds between fiscal regulation and economic
growth. See Loayza, Oviedo and Serven (2004).
17. Ivanova, Keen and Klemm (2005).
18. Based on analysis of Doing Business indicators with health,
education and infrastructure indicators in the World Bank’s
World Development Indicators (2005d) and Global Competitiveness
Report 2004–05 (WEF 2004). The results hold
controlling for income per capita.
19. Desai, Foley and Hines (2004).
20. World Bank (2004b).
21. Engen and Skinner (1996), Lee and Gordon (2004) and
Slemrod (1995).
22. Goolsbee (2002).