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Underlying dataIt is important to look at the underlying data for each indicator as well as the overall and individual rankings. The Paying Taxes results rank each economy on each indicator and these are combined to produce an overall ranking. Where reforms are made to a tax system, there is the potential for an improved ranking. However, in understanding the extent of the movement in the ranking, it is important to understand where the economy is situated in the distribution of the rankings. The chart below shows that for each of the indicators, there is a 'clustering' of results with a large number of economies falling within a certain banding. For these economies, a small improvement in their results can result in a large movement up the rankings. For economies in a more sparsely populated part of the distribution, large improvements may result in moving only one or two places up the rankings.  |