Abstrcat
Among the factors determining the economic situation in each country is the business environment as such the economic growth and development and consequently improving the healthiness of the economy depend on having a suitable business environment.
Using the panel data method, this article seeks to investigate the role of business environment in economic growth as a simple index in the countries included in the Iran’s 1404 Outlook Document, during 2010-2017. The results show that the business environment has a positive and significant relationship with economic growth. In other words, by increasing one unit of the business index, economic growth increases by about 0/105 of the unit. The institutional variables, good governance index and economic liberty have no significant effects on the business index. The macroeconomic variables such as (national) gross fixed capital formation have a positive and significant effect and economic investment has a negative and significant effect on economic growth. Government expenditures and economic misery indices have a negative and significant effect on economic growth. In order to improve the business environment of the countries in question, suggestions are presented such as electronicizing the red tape of the businesses and simpler laws and regulations.
|