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A Perspective on Administrative Distance, Theoretical Development and Measurement
preprintposted on 2021-06-17, 16:03 authored by André AlvesAndré Alves, Marcelo Duarte, Fernando Carvalho
The conceptualization of administrative distance exists for over 20 years. Despite its ubiquity, we found an unsatisfactory theoretical and practical depth when it comes to its operationalization, and studies that narrow onto its development are scarce. We have set, therefore, to improve both the theoretical scope and measurement of administrative distance. We achieved this using an inductive approach, which allowed us to infer from observed results, such observation suggesting the addition of the variables in the Doing Business Report, as they capture a previously omitted and relevant aspect of administrative distance: bureaucratic efficiency. We use a reference model, featuring a panel random-effects regression, as a benchmark for the study of our proposal. We achieve an improved model with a significantly higher explanatory capacity while observing that the new measure is both significant and independent from the existing administrative distance measure, being complementary. This work opens several avenues for future research, having meaningful consequences for the development of better institutional distance models.
This work has been funded by national funds through FCT – Fundação para a Ciência e a Tecnologia, I.P., Project UIDB/05037/2020
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