Abstract:

High quality business environment is part of state capacity. And the literatures neglect the institutional cost, which should be taken as one of the most important elements during the business environment construction process. This paper develops a institutional cost analytic framework, and collects empirical data from reform actions and policy documents. We find that the administrative reform is the key to promote the business environment. This paper introduces the institutional cost theory into the administrative reform research and make marginal contribution to the existing literature. To further promoting the quality of business environment, the e-government could play more important role and the government should provide better public service.

Key words: administrative reform, business environment, institutional cost, enterprise, e-government