Components of Ease of Doing Business Inferred from Macroeconomic Performance Indicators

Catherine M. Garcia, Dolly E. Hinayon


This study seeks to find a significant relationship between macroeconomic performance and Ease of Doing Business indicators. We utilized the Principal Components Analysis to reduce the macroeconomic performance indicators into fewer dimensions so that Multinational Companies (MNC) can easily refer to when it comes to assessing the business environment and economic performance of a country. Results show that the changes in the principal components can explain 80% of the total variations in the Ease of Doing Business (Data to Frontier) score. Among the six principal components, ‘Economic Freedom’ has the highest positive impact on the Ease of Doing Business. On the other hand, the principal component ‘Price Stability’ creates an adverse effect on the Doing Business score.


Principal components analysis; Foreign direct investment; Doing business; Multinational companies; Symbolic regression; Artificial intelligence


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