Doing Business 2017: Mexico Summary
Core Content
The Doing Business 2017 report evaluates the ease of doing business across 190 economies, focusing on regulatory processes that affect small and medium-sized businesses. The report includes 11 key indicators covering the business life cycle, such as starting a business, getting electricity, registering property, and resolving insolvency. Mexico is ranked 47th in the ease of doing business ranking and has a Distance to Frontier (DTF) score of 72.29 in 2017, up slightly from 71.95 in 2016.
Main Points
- Methodology Update: The 2017 edition introduces a gender dimension in three of the indicators and expands the paying taxes indicator to include postfiling processes like tax refunds, audits, and appeals.
- Comparative Data: For each indicator, Mexico is compared with other selected economies (comparator economies) and the global best performers.
- Key Indicators: The report measures procedures, time, and cost for various business activities. It highlights how these factors affect the business environment and provides insights for policy reform.
- Regional Context: Mexico is part of the Latin America and the Caribbean region, which is generally characterized by moderate regulatory environments.
Key Indicators Overview
| Indicator |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Starting a Business (Rank) |
93 |
72 |
- |
- |
Brazil: 175, Colombia: 61, India: 155, United States: 51 |
New Zealand (1) |
| Starting a Business (DTF Score) |
85.74 |
86.92 |
85.31 |
87.86 |
Brazil: 65.04, Colombia: 89.57, India: 74.31, United States: 91.23 |
New Zealand (99.96) |
| Procedures (Men) |
7.8 |
7.0 |
8.0 |
7.0 |
- |
- |
| Time (Men) |
8.4 |
8.4 |
8.5 |
8.0 |
- |
- |
| Cost (Men) |
17.8% |
18.1% |
19.1% |
11.5% |
- |
Slovenia (0.0%) |
| Procedures (Women) |
7.8 |
7.0 |
8.0 |
7.0 |
- |
- |
| Time (Women) |
8.4 |
8.4 |
8.5 |
8.0 |
- |
- |
| Cost (Women) |
17.8% |
18.1% |
19.1% |
11.5% |
- |
Slovenia (0.0%) |
| Dealing with Construction Permits |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
83 |
87 |
- |
- |
Brazil: 172, Colombia: 34, India: 185, United States: 39 |
New Zealand (1) |
| DTF Score |
69.79 |
68.91 |
68.87 |
74.32 |
Brazil: 51.28, Colombia: 76.54, India: 32.83, United States: 75.74 |
New Zealand (87.40) |
| Procedures |
13.0 |
13.0 |
13.0 |
13.0 |
- |
- |
| Time (days) |
86.4 |
91.4 |
81.0 |
113.0 |
- |
Korea (18.0) |
| Cost (% of warehouse value) |
9.8% |
10.2% |
11.3% |
2.5% |
- |
Trinidad and Tobago (0.1%) |
| Getting Electricity |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
98 |
84 |
- |
- |
Brazil: 47, Colombia: 74, India: 26, United States: 36 |
Korea (1) |
| DTF Score |
68.32 |
70.11 |
65.76 |
80.83 |
Brazil: 81.23, Colombia: 73.73, India: 85.09, United States: 83.39 |
Korea (99.88) |
| Procedures |
6.8 |
6.8 |
7.0 |
6.0 |
- |
- |
| Time (days) |
100.4 |
107.9 |
112.0 |
44.0 |
- |
- |
| Cost (% of income per capita) |
336.7% |
332.9% |
357.9% |
232.7% |
- |
Japan (0.0%) |
| Registering Property |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
101 |
111 |
- |
- |
Brazil: 128, Colombia: 53, India: 138, United States: 36 |
New Zealand (1) |
| DTF Score |
61.05 |
56.89 |
59.08 |
70.68 |
Brazil: 52.62, Colombia: 73.29, India: 50.00, United States: 76.80 |
New Zealand (94.46) |
| Procedures |
7.7 |
7.7 |
8.0 |
6.0 |
- |
- |
| Time (days) |
42.1 |
65.3 |
46.0 |
23.0 |
- |
Singapore (1.0) |
| Cost (% of property value) |
5.2% |
5.2% |
5.6% |
3.5% |
- |
Saudi Arabia (0.0%) |
| Getting Credit |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
5 |
5 |
- |
- |
Brazil: 101, Colombia: 2, India: 44, United States: 2 |
New Zealand (1) |
| DTF Score |
90.00 |
90.00 |
90.00 |
90.00 |
Brazil: 45.00, Colombia: 95.00, India: 65.00, United States: 95.00 |
New Zealand (100.00) |
| Strength of Legal Rights Index |
10.0 |
10.0 |
10.0 |
10.0 |
- |
- |
| Depth of Credit Information Index |
8.0 |
8.0 |
8.0 |
8.0 |
- |
- |
| Credit Bureau Coverage (% of adults) |
100.0% |
100.0% |
100.0% |
100.0% |
- |
- |
| Protecting Minority Investors |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
53 |
51 |
- |
- |
Brazil: 32, Colombia: 13, India: 13, United States: 41 |
New Zealand (1) |
| DTF Score |
60.00 |
60.00 |
60.00 |
60.00 |
Brazil: 65.00, Colombia: 73.33, India: 73.33, United States: 64.67 |
New Zealand (83.33) |
| Strength of Minority Investor Protection Index |
6.0 |
6.0 |
6.0 |
6.0 |
- |
- |
| Conflict of Interest Regulation Index |
6.0 |
6.0 |
6.0 |
6.0 |
- |
New Zealand (9.3) |
| Paying Taxes |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
114 |
112 |
- |
- |
Brazil: 181, Colombia: 139, India: 172, United States: 36 |
UAE (1) |
| DTF Score |
65.81 |
65.85 |
65.81 |
65.81 |
Brazil: 33.03, Colombia: 58.91, India: 46.58, United States: 83.85 |
UAE (99.44) |
| Payments (per year) |
6.0 |
6.0 |
6.0 |
6.0 |
- |
- |
| Time (hours per year) |
286.0 |
286.0 |
286.0 |
286.0 |
- |
Luxembourg (55.0) |
| Total Tax Rate (% of profit) |
52.0% |
51.9% |
52.0% |
52.0% |
- |
UAE (26.1%) |
| Trading across Borders |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
61 |
60 |
- |
- |
Brazil: 149, Colombia: 121, India: 143, United States: 35 |
10 Economies* |
| DTF Score |
82.09 |
82.09 |
82.09 |
82.09 |
Brazil: 55.57, Colombia: 62.83, India: 57.61, United States: 92.01 |
100.00 (10 Economies*) |
| Time to Export: Border Compliance (hours) |
20 |
20 |
20 |
20 |
- |
0 (18 Economies*) |
| Cost to Export: Border Compliance (USD) |
400 |
400 |
400 |
400 |
- |
0 (18 Economies*) |
| Time to Export: Documentary Compliance (hours) |
8 |
8 |
8 |
8 |
- |
1 (25 Economies*) |
| Cost to Export: Documentary Compliance (USD) |
60 |
60 |
60 |
60 |
- |
0 (19 Economies*) |
| Time to Import: Border Compliance (hours) |
44 |
44 |
44 |
44 |
- |
0 (25 Economies*) |
| Cost to Import: Border Compliance (USD) |
450 |
450 |
450 |
450 |
- |
0 (28 Economies*) |
| Time to Import: Documentary Compliance (hours) |
18 |
18 |
18 |
18 |
- |
1 (29 Economies*) |
| Cost to Import: Documentary Compliance (USD) |
100 |
100 |
100 |
100 |
- |
0 (30 Economies*) |
| Enforcing Contracts |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
40 |
42 |
- |
- |
Brazil: 37, Colombia: 174, India: 172, United States: 20 |
Korea (1) |
| DTF Score |
67.01 |
65.69 |
65.45 |
74.60 |
Brazil: 67.41, Colombia: 34.29, India: 35.19, United States: 72.61 |
Korea (84.15) |
| Time (days) |
340.7 |
389.0 |
350.0 |
295.0 |
- |
Singapore (164.0) |
| Cost (% of claim) |
33.0% |
33.0% |
33.5% |
30.4% |
- |
Iceland (9.0%) |
| Quality of Judicial Processes Index |
10.1 |
10.1 |
9.5 |
13.0 |
- |
Australia (15.5%) |
| Resolving Insolvency |
Mexico DB2017 |
Mexico DB2016 |
Mexico City DB2017 |
Monterrey DB2017 |
Comparator Economies |
Best Performer |
| Rank |
30 |
29 |
- |
- |
Brazil: 67, Colombia: 33, India: 136, United States: 5 |
Finland (1) |
| DTF Score |
73.11 |
73.03 |
73.11 |
73.11 |
Brazil: 49.15, Colombia: 71.74, India: 32.75, United States: 89.19 |
Finland (93.89) |
| Recovery Rate (cents on the dollar) |
69.1 |
68.9 |
69.1 |
69.1 |
- |
Norway (92.9%) |
| Time (years) |
1.8 |
1.8 |
1.8 |
1.8 |
- |
Norway (0.4%) |
| Cost (% of estate) |
18.0% |
18.0% |
18.0% |
18.0% |
- |
22 Economies* (1.0%) |
| Strength of Insolvency Framework Index |
11.5 |
11.5 |
11.5 |
11.5 |
- |
6 Economies* (15.0%) |
Key Information
- The report highlights the importance of measuring regulatory processes to identify bottlenecks and support policy reform.
- Mexico has improved slightly in the DTF score but still lags behind global best performers.
- The inclusion of gender dimensions in some indicators provides a more comprehensive understanding of how regulations affect different groups.
- The report emphasizes that while rankings show relative performance, the DTF score provides an absolute measure of regulatory distance from best practices.
- The methodology is based on the assumption of a local limited liability company operating in the largest business city, with data collected from 2016 (except for paying taxes, which uses 2015 data).
Conclusion
The Doing Business 2017 report offers a detailed analysis of Mexico's regulatory environment, comparing it with other economies and identifying areas for improvement. While Mexico has made some progress, it remains below the global best performers in most indicators. The report serves as a valuable tool for policymakers to assess and reform business regulations in a way that promotes economic growth and equal opportunity.