Regulatory Quality: Standard Error

This indicator evaluates the perceived effectiveness of government efforts in developing and enforcing policies that foster an environment conducive to private sector growth. The accompanying measure of standard error reflects the degree of uncertainty associated with these governance assessments; a higher standard error suggests greater variability and less reliability in the estimated quality of regulation. Understanding this precision is crucial for stakeholders, as it defines the confidence we can have in the governance evaluations, illustrated by the use of a 90 percent confidence interval. This interval, calculated as the estimate plus or minus 1.64 times the standard error, serves as a vital tool for policymakers and investors to gauge the stability and predictability of the regulatory landscape, thus informing their strategic decisions. Source: