Investigating the relationship between economic growth and business environment indicators (Case Study: Group D8)

Subject Areas : Financial Economics

Emambakhsh Eidouzahi ¹ , Mohammad Mohebbi ² , Sayed Yaghoob Zeraatkish ³

1 - PhD Student, Department of Economics, Qeshm Branch, Islamic Azad University, Qeshm, Iran.
2 - Assistant Professor, Department of Economics, Faculty of Economics and Management, Hormozgan University, Iran.
3 - Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, Islamic Azad University, Science and Research Branch, Tehran, Iran.

Received: 2023-03-13

Keywords: Economic growth, Investment, Business environment, D8 group,

Abstract :

Successful business is affected by the economic conditions of the environment. In a recession, companies and investors show less willingness to invest. Business development has an important place in economic growth at the national, regional and international levels. At the same time, various macroeconomic factors affect business development. Therefore, the purpose of this research is to investigate the relationship between economic growth and business environment indicators in D8 countries. The business indicators in this research are: ease of starting a business, ease of obtaining a license, ease of receiving electricity, registering the company's property, obtaining credits, supporting capital, paying taxes, cross-border trade, executing contracts, liquidating the company. The present research is based on the applied goal and in terms of the nature and descriptive method used, it is correlation. The statistical population under investigation includes D8 countries (Iran, Turkey, Pakistan, Bangladesh, Indonesia, Malaysia, Egypt and Nigeria) which was selected as a sample for the years 2005-2020. To analyze data, tests (unit root, Hausman, generalized torque model, Sargan, Bond) were used in STATA software environment. The results showed that there is a positive relationship between economic growth and business environment. Also, among the indicators of the business environment, the index of support for investors and the index of obtaining credit and execution of contracts had the greatest effect on economic growth.