Title: Business environment as the determinant of economic growth

Authors: Anna Ermolina

Addresses: Department of Mathematical Statistics and Econometrics, Plekhanov Russian University of Economics, 117997, Moscow, Stremyanny lane, 36, Russia; Higher School of Economics, Institute for Social Policy, 101000, Moscow, Myasnitskaya st., 20, Russia

Abstract: Does the business environment determine economic growth? What factors provide stable business development? Recent studies explore business environment as a key factor of prosperous business functioning. The subjective estimates of the business obstacles based on the firm-level World Bank Enterprise Survey (WBES) are aggregated on the country level. Using the country average values of 13 business obstacles 128 countries are classified into six clusters. Cross tables analysis and correlation analysis find that there is a correlation between the prevalence of the business obstacles and national income growth, export growth, high-technology export, expenditure on R&D. Considering regional differences the results show the priority of the business obstacles that could be used in policymaking.

Keywords: business environment; business obstacles; business constraints; business development; business functioning; business growth; firm growth; economic growth; World Bank Enterprise Survey; WBES; cross-country comparison; national income growth; export growth; high technology; high tech exports; R&D expenditure; research and development.

DOI: 10.1504/JIBED.2016.080020

Journal for International Business and Entrepreneurship Development, 2016 Vol.9 No.4, pp.417 - 430

Received: 04 Jan 2016
Accepted: 29 Mar 2016
Published online: 28 Oct 2016 *

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