Understanding the ease of doing agribusiness in emerging Asian economies: evidence from world enterprises survey

Abstract

Purpose The purpose of this paper is to analyze the characteristics of agribusiness firms in India, China and Pakistan, as well as the challenges they face in doing business. Design/methodology/approach This study is based on the World Bank’s Enterprises Survey (WBES) data. The survey was carried out through a questionnaire survey from the owner and top managers of 716, 247 and 174 agribusiness from India, Pakistan and China, respectively. This enterprises survey has comprised the information regarding the wide range of firms’ characteristics and 16 parameters of business obstacles. Simple statistical tools such as chi-square and analysis of variance have been used to analyze the data. Findings Chi-square test shows the statistically significance difference in firms’ characteristics across agribusiness firms of India, China and Pakistan. Chinese firms are better in terms of having an international quality certification, own websites and getting credit. In Pakistan, access to land for agribusiness is an obstacle while for India and China, it is easy to acquire land for agribusiness purposes. In Pakistan, tax rate and political stability is a moderate obstacle while in India and China, it is a minor obstacle in agribusiness. Labor regulation does not perceive any considerable obstacle in doing business in India and Pakistan. Practical implications This study provides an understanding of differences in the agribusiness environment in emerging economies such as India, Pakistan and China based on WBES data. This study can be helpful for agribusiness managers and government policymakers for promoting agriculture-based entrepreneurship. Originality/value It is the first attempt to compare the profile of agribusiness firms in growing Asian economies such as India, Pakistan and China, as well as perceived business hurdles, using a comprehensive enterprises survey data of World Bank.