Aproximando el clima de negocios a nivel municipal

This study analyses the more appropriate environment for the business location at the Peruvian municipal level. The first part of this study analyses the conditions to determine the good locations for investing in business, within the framework of the Economic Geography (Venables, 2003; and Burgess and Venables, 2004). The Municipal National Register 2004 and the Population and Household Census 2005 were used to create a Business Climate Indicator with the objective of identifying the municipalities that promote the right environment for business. The results show that, only 27.5% of the municipalities that were studied (464 out of 1686), encourage an adequate business climate in Peru. Said municipalities are located mostly in the coastal regions, standing out the municipalities of Lima and Callao, which have the highest Business Climate Indicators at the national level. The study concludes with some reflections on the need to make more efforts for improving the business climate in Peru.