Business Environment Evaluation Based on Entropy-Topsis Model: Evidence from China

Abstract

A good business environment is a basic element to attract business gathering, release investment potential, improve the credibility and influence of the entire country, and promote economic development. The business environment assessment aimed at sorting out the status quo of the business environment and discovering the weaknesses of the business environment is the prerequisite and basis for optimizing the business environment. This article takes China's 34 provincial capitals, municipalities directly under the Central Government, and single-planned cities as the research objects, sorts out the current business environment indicator system and various research conditions on the system, and builds on this basis to cover the market environment and government environment The evaluation index system of 34 important cities' business environment including eight first-level indicators including legal and policy environment, humanistic environment, human resources, financial services, public services, and innovation environment, and the use of entropy-Topsis model to analyse the data. The research results indicate that in 2017, among the 34 major cities in China, Shanghai, Beijing, and Shenzhen have the best overall business environment in the three first-tier cities, and each city has its own unique advantages.