Effects of formal institutions on business performance in the Philippines.

The resilience of Asian firms in the face of the current economic downturn in North America and Western Europe is attracting renewed attention to the role of government in sustaining firm competitiveness. The paper adds to this debate by drawing from institutional theory to assess the impacts of selected formal government institutions on business performance in the Philippines. Based on a large-scale survey (n = 658) of business owners in the Philippines undertaken by the World Bank, the study finds that access to finance, the rule of law and regulatory quality contribute significantly to business performance. The policy implications of the findings are fully discussed, along with avenues for future research. [ABSTRACT FROM AUTHOR]