Investment Climate surveys (ICs) are a recent instruments used by The World Bank to identify key
obstacles on country competitiveness and guide policy reforms and government interventions in developing
countries. In this paper, panel data from four ICs of four South East Asian countries (Indonesia, Malaysia,
Philippines and Thailand) are pooled to estimate total factor productivity and allocative efficiency aspects
of firms in each country, using variants of the Olley and Pakes productivity decomposition. Several
economic performance results are disaggregated to obtain country-specific evaluation of the IC impacts. To
establish priorities for policy reforms, the corresponding key investment climate results are organized in
five categories; Infrastructures, Red Tape, Corruption and Crime, Finance and Corporate Governance,
Quality, Innovation and Labor Skills and other Control Variables.