Business Environment Indicators Research Articles

The impact of natural resource dependency on green economic growth: A business environment perspective

Transforming the “resource curse” into a “resource blessing” is crucial for achieving sustainable development goals. This paper develops business environment indicators using ecosystem theory to examine the influence of natural resource reliance on green economic growth from a business environment perspective. The empirical study is based on panel data analysis of 266 Chinese cities from 2012 to 2021. The results show that the business environment and its sub-dimensions financial environment, market environment, and political and legal environment can weaken the inhibitory effect of natural resource dependence on green economic growth, and robustness and endogeneity analyses are conducted. Further, the threshold regression reveals that the business environment and its sub-dimensions of financial environment can turn the “resource curse” into “resource blessing” after reaching the threshold value. Finally, heterogeneity analysis reveals that the same policy has varying regulatory effects in resource-based versus non-resource-based cities.

Impact of business environment, entrepreneurship and competitiveness indicators on per capita income

Many parameters effect on the Gross Domestic Product per capita (GDPPC) index of countries. Including population, population growth rate, natural resources, economic growth, business performance, exports and imports, etc. The main purpose of this study is to investigate the impact of business environment, entrepreneurship, and competitiveness indicators on the GDPPC. For this purpose, 42 countries from around the world have been selected and analyzed between 2013 to 2019. World Bank annual reports, Global Competitiveness Index, Global Entrepreneurship Index, and Doing Business reports were used to collect the data. Also the data analysis was done according to the panel data method using Stata software. The results shows that in general, there is a positive relationship between business environment, entrepreneurship, and competitiveness indicators with GDPPC.

Internationalization of MSME through Property Rights: A Study Case of Food Stall

The purpose of this study is to find out the internationalization of MSMEs from a review of property rights in case studies of simple food stalls. The data collection method was carried out qualitatively through field observations, interviews and documentation in the process of interviewing 3 informants. The sampling technique in this study is quota sampling. The data analysis technique used in this study is descriptive analysis and explorative analysis and then processed using the Atlas qualitative data analysis tool. The results of this study support the internationalization of Simple Restaurants, because there are several indicators of innovation, business environment, and internationalization that can influence the internationalization process of Simple Dining Stalls to fulfill the desired desires. This indicates that the process was successful.

The Impact of Entrepreneurship Financial Opportunities and Business Environment on the Country’s Innovation Development and National Wealth

The Covid-19 pandemic caused negative consequences for the economic growth and national wealth of countries worldwide. In 2020 the GDP per capita growth was -4,3% worldwide and -5% in Azerbaijan. However, in 2021, it was 4,8% and 5,1% in accordance, indicating Azerbaijan’s economic potential. At the same time, Azerbaijan takes only 80th place from 132 countries in the Global Innovation Index Rank, which is not sufficient and requires further innovation development of the country. Also, Azerbaijan is the 34th of 190 countries in the Ease of Doing Business rank. Still, according to the Enterprise Surveys made by the World Bank, 23,7% of firms in Azerbaijan choose access to finance as their biggest obstacle. At the same time, the average world indicator is 14,2%, and the average one in Europe and Central Asia is 9,4%. Therefore, this research aims to prove the hypothesis about the positive impact of entrepreneurship financial opportunities and the business environment on the country’s innovation development and national wealth. In the first stage, a bibliometric and analytical analysis was carried out using the tools of the Scopus database, the VOSviewer, and Google Trends. In the second stage, a sample of 20 countries was formed. It includes the top 10 leaders in the Global Innovation Index Rank with high-income economies (as benchmark countries for innovation development, according to which Azerbaijan should increase its position) and the top 10 leaders with upper-middle-income economies (similar to Azerbaijan). The informational base consists of data from the World Bank, the World Intellectual Property Organization, and the World Economic Forum for the last 10 available years. In the third stage, the correlation analysis was made to identify the relationship between the indicators of entrepreneurship financial opportunities and business environment (financing of SMEs, venture capital availability, domestic credit to the private sector, ease of doing business, ease of starting a business, ease of getting credit, ease of resolving insolvency, protecting minority investors, number of new limited liability companies, new business density) and the indicators of the country’s innovation development (Global Innovation Index) and national wealth (total wealth per capita). And at the fourth stage, the impact of entrepreneurship financial opportunities and business environment on the country’s innovation development and national wealth was determined based on regression modeling results. The obtained results could be useful for scientists in further research on this issue and for government officials in improving the state’s economic policy.

The Relationship Between Business Environment and Happiness with Corporate Profitability

Business and investment in any area requires the provision of an appropriate and secure institutional environment. One of the factors that helps to expand businesses and increase corporate profits is the right business environment. Avoiding complicated administrative bureaucracy, lending and credit, proper international trade, and the ease of obtaining the necessary permits will be helpful in this regard. On the other hand, businesses can perform better in a happy and stress-free environment. Happiness is an emotional state characterized by feelings of joy, satisfaction, contentment, and fulfillment. While happiness has many different definitions, it is often described as involving positive emotions and life satisfaction. The purpose of the present study is to investigate the relationship between the business environment and happiness indicators with corporate profitability. For this purpose, 175 top companies in the world from 2013 to 2018 that were profitable among the top 500 companies each year were selected as the statistical population. World Happiness annual report, Doing Business annual reports, and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Stata software. The results shows that in general, there is a positive relationship between business environment and happiness indicators corporate profitability.

Ownership, Enforcement, and the Effects of Business Environment

We investigate how the effects of the business environment depend on whether the measure is de jure or de facto, and how the business environment effects differ by ownership. Four aspects of the business environment are found to be relatively robust by multiple data sources: access to finance, electricity, internet, and human capital. The effects of de jure business environment indicators on firm performances depend on measures of contract enforcement. Foreign-owned firms benefit more from the maintenance of physical safety and ease in obtaining construction permits, and gain competitive advantage in productivity when domestic infrastructure or access to finance is worse.

Business Environment and Start-Up in Indonesia:Empirical Evidence from Province-level Data

The purpose of this study is to analyze the Effect of the Business Environment on Start-up in Indonesia. This study specifically examines the effect of Gross Regional Domestic Product, Per Capita Expenditure, Unemployment Rate, Total Population, Computer Users and Individual Internet Users which are used as business environment indicators on the existence of startup businesses in 17 Indonesian Provinces during the 2013-2018 period using panel data regression analysis tools to prove that GRDP, Total Population, Computer Users and Internet Users have a positive and significant effect on the existence of start-up businesses in Indonesia. Meanwhile, expenditure per capita and the unemployment rate have a negative effect on the existence of start-up businesses in Indonesia

Relationship of profitability of world’s top companies with entrepreneurship, competitiveness, and business environment indicators

ABSTRACT Identifying the factors affecting profitability is important from the perspective of market players. One of the most important benchmarks of firm performance is accounting profit and effective factors analysis so that users of accounting information analyse the factors affecting profit, firm performance and various aspects of its performance and according to estimates Done, make your own decision on how to allocate resources. The main purpose of this study is to investigate the impact of some factors of competitiveness, entrepreneurship and business environment indicators on the profitability of the world’s top companies. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable among the top 200 companies each year were selected as the statistical population. World Bank annual reports, Global Competitiveness Index, Global Entrepreneurship Monitor, and Fortune site were used to collect the data. Also the data analysis was done according to the data panel method using Eviews10 software. The results show that in general, there is a positive relationship between competitiveness, entrepreneurship and business environment indicators with financial performance of top companies in the world. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.

How financial performance of world’s top companies are related to business environment?

ABSTRACT Businesses need an environment in which business conditions in features such as starting a business, registering property, getting credit, paying taxes, trading across borders and enforcing contract be simple. Every year, the world bank publishes a report on the business environment of different countries around the world with the aim of improving doing business environmental conditions. The purpose of the present study is to investigate the relationship between the financial performance of world’s top companies and the business environment indicators. For this purpose, 176 top companies in the world from 2013 to 2018 that were profitable were selected as the statistical population. Doing business annual reports, and Fortune site were used to collect the data. Also the data analysis was done according to the panel data method using Eviews10 software. The results shows that there is a positive relationship between business environment Indicator and financial performance of world’s top companies. On the other hand, the per capita income of the countries in which the top companies belonged was considered as a control variable and the results show that the per capita income has a positive and significant relationship with the financial performance of the top companies in the world.

The impacts of institutional quality and business environment on Chinese foreign direct investment flow to African countries

This study examines the impacts of institutional quality and business environment on Chinese foreign direct investment (F.D.I.) flow to Africa. We derive aggregate indicators of institutional quality and business environment using economic and governance institutions, doing business, transport efficiency indicators conducting a principal component analysis. We employ Poisson pseudo-maximum likelihood (P.P.M.L.) procedure to estimate the gravity model of F.D.I. flow as it can solve zero-valued observations and heterogeneity problems. Our findings disclose that institutional quality and business environment indicators are significant motivators of Chinese F.D.I. flow to Africa. Our findings are robust and similar after we account for endogeneity concerns using an I.V. estimator. Based on our results, we conclude that improvement in the business environment and the institutional quality of African countries is key to spurring Chinese F.D.I. flow to Africa.

System Data Analysis: Innovative Technologies, Methods and Techniques

Purpose: The purpose of this article is to explore the use of technology of system data analysis. To achieve this goal it is necessary to solve the following set of tasks: to consider the essential characteristics of system analysis and its concept and to identify the algorithm of the application system of data analysis in the framework of methodological tools. Design/Methodology/Approach: The system analysis of data is considered a popular method of scientific knowledge, similar to the study of operations, since this approach is aimed at optimizing the components of a particular system. Its proper application needs knowledge of its methods, technologies and techniques. Authors compiled, analyzed and structured all the elements needed to solve the system data analysis’ issues. Findings: Authors developed methodological tools, which can be classified according to some features as: the stage of solving a specific problem, the method of obtaining and presenting information data, the level of formalization of data. Authors also presented the system approach algorithm and scope, highlighting the technologies involved. Practical Implications: The results stressed the problem that the state is faced with the need to maintain a balance between the desire to regulate the state in this sphere and the needs of the market. The findings may be implemented into managerial practices in order to improve and increase the effectiveness of business administration. Originality/Value: The key contribution of this study is the compiled set of data analysis elements to practically keep business environment indicators of interest, relying not only on intuition, but also on framework of methodological tools.

Business Environment in South Asia: Foreign-Owned Firms’ Perspectives

This paper studies the foreign-owned firms’ (hereinafter, FOFs) perspectives about selected indicators of business environment in four South Asian countries - Bangladesh, India, Pakistan and Sri Lanka. For the last few decades, these countries have eagerly sought to increase the inflow of foreign capital. Using the World Bank’s Enterprise Survey 2017 data, this study identifies political instability, poor infrastructure, and pervasive corruption as the three biggest obstacles that FOFs face in their business operations in these countries. The other obstacles include inadequately educated workforce, customs and trade regulations, crime, theft and disorder, tax administration, business licensing and permits, and access to finance. This study also finds that since 2007 the business environment for FOFs has improved remarkably in Bangladesh, improved slightly in India, improved modestly in Sri Lanka, but worsened noticeably in Pakistan. This study adds to our knowledge of factors that affect the dynamics of foreign capital inflow, which should be helpful in devising strategies to attract more foreign capital to developing countries.

An empirical analysis of factors affecting competitiveness of C.E.E. countries

This paper analyses the main economic factors that are influencing the competitiveness of Central and Eastern European (C.E.E.) countries. The research was carried out on a sample of ten countries (Bulgaria, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Slovenia and Slovakia), over the period 2004–2016. These countries were grouped by their stage of economic development, respectively: efficiency driven economies, in transition between efficiency and innovation and innovation driven economies. An econometric analysis on panel data was used, considering as a dependent variable the competitiveness of a country, quantified by the Global Competitiveness Index. As independent variables, we took into account a set of seven macroeconomic and business environment indicators which could have an impact on a country’s competitiveness. The results obtained show important differences between countries, but also some resemblance. Although all the considered countries are emerging ones, the factors that have a significant influence on the competitiveness differ significantly. Thereby, if for efficiency-driven countries, G.D.P., inflation rate, trade, labour productivity and costs are important determinants of competitiveness, for innovation-driven countries the determinants of competitiveness are: G.D.P., inflation rate, tax rate, F.D.I., trade and costs. As regards the C.E.E. countries in transition only G.D.P., inflation rate and labour productivity are determinants of competitiveness.

INDEXES AS BUSINESS ENVIRONMENT CHARACTERIZING INSTRUMENTS

Every year several world organizations evaluate countries according different criteria and determine their indexes, such as KOF Index of Globalization, Corruption Perception Index, Global Competitiveness Index, Global Innovation Index, and others. These indexes later are used for analysis of the aspects of entrepreneurship activities in specific countries. One particular application of indexes is related to analysis and evaluation of the business environment of the country. The entrepreneurship is affected by many factors; to research all of them is very time and effort consuming process. The proposed approach (i.e., use of indexes) is targeted and can yield results of the practical significance. The goal of the current paper is to compare indicators of the Baltic countries with average indicators of the European Union by using selected indexes that characterize business environment. To reach this goal we set the following tasks: (1) to characterize theoretical framework of indexes that pertain to the business environment; (2) to perform comparative analysis of selected indicators of business environment of the Baltic countries and the EU according to 4 indexes; (3) to make conclusions about business environment in the Baltic countries, especially in Latvia, on the basis of indexes. The current study employs the logical-constructive method – comparison of theoretical notions with empirical data. The factor analysis allows identifying and comparing factors within chosen indexes. The benchmarking is used to estimate indicators of the Baltic countries and compare them mutually and with the average indicators of the EU – it allows to identify the best examples and calculate the deviation. The graphic method allows depicting information visually and making subsequent analysis.DOI: http://dx.doi.org/10.5755/j01.eis.0.11.18645

Foreign banks and the business environment in transition: a cointegration approach

The contribution of foreign banks to the development of the financial sectors in emerging markets, and especially the transition economies of Central and Eastern Europe, is well-known. The purpose of this article is to focus on an area of foreign bank influence that has thus far only begun to emerge from the extant literature: the effect of foreign banks on the broader business environment in transition. In addition to improving financial intermediation and broader access to credit, has the presence of foreign financial institutions helped to shape a better business environment in the long-run? Or did foreign banks retard local institutional development and thus worsen the overall business environment? Using cointegration techniques across a sample of 21 diverse transition countries from 1983 to 2015, I find that foreign bank entry had a positive impact across business environment indicators, but with some indicators taking longer to influence than others. The policy implications are that business environments can be improved by facilitating foreign bank entry rather than restricting it.

DOES QUALITY OF BUSINESS ENVIRONMENT INFLUENCE FOREIGN DIRECT INVESTMENT INFLOWS? A CASE OF CENTRAL EUROPEAN COUNTRIES.

This paper investigates the effect of selected business environment indicators on FDI inflows in case of Visegrad countries for the period of 2005-2015. Based on correlation and regression analysis, it is concluded that the business environment matters significantly for FDI inflows, however the direction and strength of dependence differs according to analysed factors. On one hand we found that the better global competitiveness of the country the higher volume of inward FDI the country receives. On the other hand, economically more free country, which is more globalized, with better rating does not attract more FDI inflows, but rather the opposite. As expected, corruption of country is discouraging foreign investors from investing in Visegrad countries.

Preduzetničko Okruženje i Konkurentnost u Bih i Srbiji / Business Environment and Competitiveness in Bih and Serbia

Rezime Bosna i Hercegovina zajedno sa Srbijom pokazuje lošije ekonomske performanse od susjednih zemalja, dok evropski prosjek ostaje daleka i umnogome nedostižna kategorija. Razlozi ovakvog nezadovoljavajućeg stanja su mnogi, i ovim radom se želi osvijetliti preduzetnički aspekt ekonomske dinamike ovih zemalja u poređenju sa svjetskim, evropskim i regionalnim prosjekom. Koristićemo komparativnu, statističku, dinamičku i kognitivnu analizu i sintezu u cilju jasnijeg sagledavanja uzroka situacije u kojoj se nalazimo, kao i uočavanja potencijalnih komparativnih prednosti. Kroz predstavljanje pozicija BiH i Srbije u izvještajima Svjetskog ekonomskog foruma u odnosu na ponderisane prosjeke svijeta, Evrope i regiona, preko analize osnovnih parametara konkurentnosti i detaljne analize indikatora preduzetništva doći ćemo do značajnih zaključaka o najvažnijim manjkavostima i mogućim prednostima preduzetništva u BiH i Srbiji. Ove rezultate bi trebalo imati na umu prilikom kreiranja budućih ekonomskih mjera uz značajnu upotrebnu vrijednost sadašnjim i budućim preduzetnicima.

A framework of performance indicators used in the governance of logistics platforms: the multiple-case study

The logistics platform (PL) can be understood as a place where different actors in the supply chain could be integrated in the same physical location and with this, obtain a greater synergy among the various logistical processes. That enabling an improvement in the level of logistical service provided to the client and representing a competitive advantage for the permanence of these organization’s in the market where they operate. The objective of this research was to elaborate a framework of performance indicators that could be used in the governance of logistics platforms based on bibliographical research on performance indicators in the business environment and logistics indicators. To achieve the proposed objective, a multiple cases study with leaders of logistic platforms located in Zaragoza, Valencia, and Barcelona in Spain was carried out. As a result a set of twenty seven performance indicators were identified. That presented a high degree of importance and can contribute to the governance of logistics platforms. The results from this study can contribute to observations and applications regarding the use of indicators in the governance of logistics platforms.

The Impact of Business Environment Reforms on New Registrations of Limited Liability Companies

Panel data for 91 countries are used to study how the ease of registering a business and the magnitude of registration reforms affect new registrations of limited liability companies (LLCs). The costs, days, and procedures required to start a business are found to be important predictors of new LLC registration. Panel regressions also show important synergies in multiple reforms of two or more business environment indicators. These results are consistent with the intuition that to be effective, reforms should be sufficiently large so that the costs of registration are lower than the expected benefits. In addition, countries with relatively weaker business environments prior to reforms require relatively larger reforms to impact the number of newly registered LLCs.

Governance of logistics platforms: The use of a survey for building a framework of performance indicators

From bibliographical research on performance indicators in the business environment and logistics indicators (logistics services and supply chain), the objective of this research was to identify a set of performance indicators that can be used in the governance of logistics platforms. In order to achieve the proposed objective, a survey with experts from various institutions in Europe, Asia and North America was carried out, in which the degree of importance of a set of performance indicators in the governance of logistics platforms was found. As a result of this study, a set of 34 indicators contained in eight dimensions of performance was identified. It is understood that the indicators identified can assist and support the governance of logistics platforms, since they rely on the presence of numerous actors in both the public and private spheres and various logistics activities are developed there. Key words: Logistics platforms, governance indicators logistics; governance logistics