Favorable Business Environment Research Articles

Assessment of Impact of Country Business Ranking on Economi c Development: An Empirical Analysis

Purpose: The World Bank's “Ease of Doing Business” index, among other business rankings, can help a country's economic progress by attracting foreign investments, encouraging entrepreneurship, and improving the business climate. Superior rankings indicate an optimised environment for business activities, which could boost investments, job opportunities, and overall economic growth. The research is conducted to assess the impact of a country's business ranking on economic development. Design/methodology/approach: The Structural Equation Modelling (SEM) method was used to assess the impact of a country's business ranking on its economic trajectory. The official World Bank report was used to obtain data from 2015 to 2021. Panel data of Global Innovation Ranking, Ease of Doing Business Ranking, and Business Freedom Ranking from 2016 to 2021 is the basis of this study. The researcher has used a conceptual framework to establish and understand the dependence among the dependent and independent variables. For measuring statistical association, the researcher has used structural equation modelling and path diagram along with correlation and regression analysis. The correlation has been used to assess their association, while the researcher has used regression to determine the impact of country business ranking. Findings: The investigator investigated the impact of India's standings in the Global Innovation Ranking, Ease of Doing Business Ranking, and Business Freedom Ranking on its Economic Development, specifically GDP, in this study. The study's findings show that India's business rankings have a significant impact on its economic development. Such global business rankings provide critical data points for policymakers, businesses, and investors to make informed decisions, thereby promoting economic growth. Furthermore, the study examined the effects of GDP growth on the combustion of fossil fuels, as measured in million tonnes, emphasising the environmental consequences of economic expansion. Research limitations/implications: It's imperative to note that this is just an estimate, and the actual relationship between the variables in the population may differ from this estimate. The estimate is based on the sample data used to fit the model and may not accurately reflect the true relationship in the population. Further analysis and interpretation of the model's goodness of fit and consideration of other factors, such as outliers or omitted variables, are essential to fully apprehend the relationship between “GIR” and the dependent variable. The results of global business rankings can help policymakers identify areas for improvement in their country's business environment. By focusing on the areas where their country is lagging behind, they can develop policies and initiatives to attract more investment, create a more favourable business environment, and support economic growth. Businesses can use the results of global rankings to evaluate potential locations for expansion or investment. It can provide insights into the ease of starting and running a business, access to credit, property rights protection, and other important factors to businesses. Investors can also use the results of global rankings to make informed decisions about where increased investment and economic growth. Global business rankings generally provide valuable information that policymakers, businesses, and investors can use to make informed decisions and support economic development. Originality/value: I hereby attest that the research paper I have submitted is the result of my own independent and unique labor. All of the sources from which the thoughts and passages were derived have been properly credited. The work has not been submitted for publication anywhere and is devoid of any instances of plagiarism.

A Study on Consumers’ Negative Online Reviews and Merchants’ Responses Discourse Strategies Based on Rapport Management Theory

Online shopping is an important consumption channel, and customers can express reviews about products on the platform. Negative reviews can inform merchants about defects of products and services, providing references for other consumers. Negative reviews and responses reflect merchants’ and customers’ adjustments to interpersonal relationships. Based on Spencer-Oatey’s rapport management theory, this paper collects 400 negative consumer reviews and corresponding merchant responses from Tripadvisor. Then the writer conducts data statistics and case analysis on the corpus, aiming to obtain the proportions of strategies for complaints and responses and to analyze rapport management tendencies of communicators. Research shows that consumers mainly adopt rapport-challenge orientation, and the most commonly used complaint strategies are “explicit complaint”, “expression of annoyance or disapproval” and “below the level of reproach”. Most merchants take rapport-enhancement orientation and rapport-maintenance orientation. They frequently employ strategies of “expressing emotion”, “apologizing”, “committing and acting” etc. This paper intends to provide references for establishing harmonious interpersonal relationships and favorable business environment.

Стратегические приоритеты развития региональных рынков персональных услуг

. Studies on regional service markets, their functioning processes, issues of economic efficiency, the result of which are personal services and measures of state support for these activities, are considered, but not enough attention is paid to issues devoted to the implementation of strategic priorities for the development of personal services regional markets. Personal services are defined from the position of personalization, i.e. through the concepts of “personal assistance”, “personal assistant”, “individual approach” and “individual action”, the subject of a personal service is a person. Personal services lead to an increase in the quality of services, an expansion of the range of services offered and, consequently, to greater consumer demand. The methodological basis of the study was based on the theoretical provisions of regional management and strategic planning, which contributes to the identification of long-term conditions and strategic priorities for the development of personal services regional markets. It is proved that the strategic priorities for the development of personal services regional markets include, firstly, the creation of a favorable business environment conducive to attracting investments into the region's economy, conducting business in the personal services sector; secondly, the creation of working conditions conducive to improving the quality and standard of living of the population, and accordingly, ensuring the growth rates in the personal services sector at the regional level; thirdly, the formation of an economic environment to provide opportunities for the use of innovations in the development of both traditional and new types of personal services.

THE NEXUS BETWEEN TRADE INFRASTRUCTURE DEVELOPMENT AND EXPORT: THE CASE OF CENTRAL AND EASTERN EUROPEAN COUNTRIES

The focus of economic policymakers in Central and Eastern European countries (CEEC) is on developing and improving national infrastructure, including roads, railways and other forms of physical infrastructure needed for the realisation of economic activities, with the primary goal being to create a favourable business environment for foreign investments and export intensification. The article aims to examine whether the development of infrastructure in these countries has contributed to the increase in exports and to what extent, which would likewise examine the justification of infrastructure investments as a part of the economic strategy and foreign trade policy. The method of panel regression analysis with fixed effects was applied, which confirms the positive and statistically significant impact of infrastructure on export, justifying the initiative for the development of national infrastructure in the observed countries. Based on the obtained results, valid conclusions have been drawn regarding the theoretical and practical implications of the research, which point to the importance of physical infrastructure development as one of the leading determinants for export incentives.

Measures of state support for small business

The article shows that the types of state support offered and provided to entrepreneurs should take into account the state of the business environment of the region in which the business is conducted. Within the framework of state regulation measures, a favorable business environment is being created, as a platform for doing small business.

Investment of hydrogen refueling station based on compound real options

As the development of hydrogen refueling stations (HRS) is key to the hydrogen industry, it is necessary to study the investment feasibility for potential investors in order to stimulate its investment. We view the HRS investment as a two-stage decision-making process, distinguishing characteristics of off-site HRS from those of on-site HRS. Investors can first decide whether or when to invest in an off-site HRS, and then can accordingly decide whether or when to upgrade from an existing off-site HRS to an on-site HRS, by retrofitting off-site HRS with on-site hydrogen production device. We select natural gas reforming as the technology of on-site hydrogen production device, not only because natural gas reforming is cheaper and maturer, but also because this type of retrofit has been applied in a real case. Since the investment in HRS entails multiple uncertainties, we use a compound real options approach for conducting an appraisal of HRS investment. Accordingly, we use the Chinese case to present a new perspective to the sequential analysis of HRS investment decision-making. Four various scenarios are set for a case study, including one benchmark scenario reflecting the current Chinese hydrogen policies, and three comparative scenarios reflecting potentially improved policies, such as increasing operational subsidy, implementing preferential taxation and stimulating demand. The results show the current scenario is not beneficial to invest in HRS building on the proposed analytical framework and the data collected from the case of China. Furthermore, the increase in demand plays the leading role in improving the probability of HRS investment, followed by the implementation of preferential taxation and increasing operational subsidies. Additionally, the on-site HRS shows its superiority over off-site HRS, because all scenarios suggest upgrading to on-site HRS should be executed immediately once the initial off-site HRS is constructed. Therefore, in the context of Chinese hydrogen market and the selected on-site technology of natural gas reforming, it is necessary to create a more favorable business environment for the layout of on-site HRS.

The Influence of Capital Structure on Corporate Effective Tax Rates of Listed Firms in Tanzania

This study examines the relationship between capital structure and corporate effective tax rates using data from 25 randomly selected listed firms on the Dar es Salaam Stock Exchange over a ten-year span (2013–2022). We employed a random fixed effect panel regression model while controlling for firm-specific variables such as size, profitability, age, and growth. The study reveals a significant and negative relationship between capital structure and effective tax rates, implying that firms utilising higher debt financing tend to experience lower effective tax rates. Additionally, firm size and profitability exhibit a significant relationship with capital structure. These findings hold significant implications for Tanzanian businesses, suggesting that they may enhance tax efficiency through strategic capital structure decisions. For policymakers, the results provide empirical insights on potential tax policy reforms, potentially fostering a more favourable business environment in Tanzania. This research contributes empirical evidence on the financial and tax dynamics of listed firms in Tanzania.

ІНВЕСТИЦІЙНА НЕВИЗНАЧЕНІСТЬ: ВИКЛИКИ ТА МОЖЛИВОСТІ ДЛЯ УКРАЇНИ

The article highlights the problems of attracting foreign direct investment in the conditions of war and the postwar period, which should be defined for the country as a period of investment uncertainty. It was emphasized that for Ukraine, which actively attracts investments from abroad, such a situation leads to the loss of opportunities for economic development and deterioration of competitiveness and can also affect the general decrease in the rate of economic growth. The volume of investment in the national economy before the war had unstable dynamics, but with the beginning of the war, the fall in investment became critical. It was noted that political instability, economic turbulence, changes in government policy, geopolitical conflicts, technological changes, or natural disasters are among the causes of investment uncertainty. It was pointed out that the result of investment uncertainty may be the delay or rejection of the implementation of investment projects. It was determined that to overcome uncertainty in the investment sphere, it is necessary to develop effective strategies for attracting investments, which is currently the most difficult task. Most of the countries that are large exporters of foreign direct investments, such as the USA, Germany, Great Britain, Japan, and others, have already aided Ukraine since the beginning of the war, so further attracting investments and their involvement in the restoration of the national economy in the post-war period will be problematic. It was emphasized that when building investment strategies, the principal things are: understanding modern investment trends (for Ukraine, in this context, it is possible to attract investments per the implementation of the Sustainable Development Goals); ensuring effective management of investment risks (insurance of direct foreign investment during wartime is especially relevant); transparency of government policy and regulatory measures, as well as the creation of a favorable business environment that will form the basis of investment stability and reliability

Macro and Micro Factor Influencing Tech Startup Valuation of Private Markets in ASEAN Countries

Startups in ASEAN countries, including Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines, have grown rapidly over the past five years. However, the current global economic uncertainty has created an imbalance that affects the budding startup ecosystem in ASEAN. A study used econometrics software and secondary data to understand how macroeconomic factors like GDP growth, country risk premium, and initial capital increases affect startup valuations in private markets in these six ASEAN member countries. Seventy-two sample data from deals between 2020 and 2022 were analyzed using various quantitative methods, such as panel data testing, T-test, and F-test. The findings indicate that the amount of money collected and the country's risk premium significantly affect startup valuations in these six member countries. However, GDP growth does not have a statistically significant effect. The F-Test shows that the Average Money Raised, the Country's Risk Premium, and GDP Growth all significantly affect startup valuations in the private markets of these six ASEAN member countries when analyzed simultaneously. The T-test reveals that the Average Money Raised is the most significant independent variable. Therefore, investors should continue fundraising, and the government should create a favorable business environment for startups and themselves. These findings could help stakeholders interested in technological investments to evaluate strategic investment in private markets in Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines. It could also help academics analyze and understand "Factors Influencing Startups Valuation in Private Markets" and assist other researchers in further developing this study.

Can enterprise digital transformation reduce the reliance on bank credit? Evidence from China

Academics are inconclusive on whether enterprises' digital transformation can reduce their reliance on bank credit. We examine this question using a Chinese sample of 2325 A-share-listed companies from 2007 to 2021, finding a significant negative correlation between a firm's digital transformation and reliance on bank credit; the results remain robust after a series of endogeneity tests. Digital transformation alleviates bank credit dependence mainly by easing firms' financing constraints and reducing information asymmetry. Specifically, the alleviation effect of enterprise digital transformation is stronger among enterprises with private ownership and smaller asset sizes. In addition to the nature of firms, increased competition in the banking sector and a favorable business environment contribute to curtailing bank credit dependence. This paper's findings point to companies' digital transformation agenda, confirming that financial development supports economic growth.

Foreign M&A and inventory adjustment: Evidence from Chinese manufacturers

With China’s deepening opening-up to the world, its favorable business environment and investment attraction policies appeal to a growing number of multinational enterprises to enter the Chinese market. As a major form of FDI, foreign M&A has raised scholars' attention to explore its role in China's economic development. As one of these academic explorations, this study makes a pioneering effort to identify the inventory adjustment effect of Foreign M&A by adopting a large-scale, firm-level dataset from the Annual Survey of Industrial Firms (ASIF) database and the Bureau Van Dijk (BVD) database. The conclusions are presented as follows: (1) Foreign M&A has a significantly positive impact on non-finished products inventory through the effect of market scale. The result remains robust when we controlled a series of control variables, using PSM+DID method and carrying out heterogeneity test. (2) Foreign M&A has a significantly negative impact on the overall inventory. In addition, foreign M&A also shows a preference for top performers, a tendency that enterprises with higher total assets and capital, higher output value, higher added value, export trade competitiveness and high sales income are prone to be targets hunted by multinational enterprises.

The Harm and Regulation of High-leverage Multiple Behaviors in LBOs

In recent years, as the development of our capital market gradually tends to mature, the number of mergers and acquisitions (M&A) of all kinds of enterprises also begins to present an increasing trend. Leveraged buyout (LBO), as a very clever acquisition form, is favored by many enterprises. However, in the context of imperfect laws and regulations, enterprises and individuals make irrational behaviors driven by extremely high interests, and one of them is blindly raising leverage multiple in pursuit of returns, it has brought a bad influence on the market, enterprises, and individuals. To create a favorable business environment, measurements have to be taken to regulate the overhigh leverage of multiple behaviors in LBOs. The essay uses the method of case study and comparative study. The most typical LBO case will be presented as an introduction, and then some other good cases will be mentioned later to illustrate the characteristics of LBO and the harms of high multiple in LBO and so on. To compensate for the harms that high leverage multiple in LBO bring to the market, enterprises and individuals, several solutions have been raised, including clarifying the principle of good faith in MBOs, improving the system of regulatory rules for the capital market, optimizing the information disclosure system of leveraged buyouts and increasing punishment for illegal speculative activities. The detailed argument will be elaborated on later.

Does Administrative Reform Improve the Business Environment in China? A Mixed-Method Analysis Based on Administrative Burden Theory

Does administrative reform boost the favorable business environment? What is the mechanism underlying such reform? This study explores the relationship between administrative reform and the business environment in China via a mixed-method approach. This paper extends administrative burden theory to government-company interactions and then proposes a framework that bridges administrative reform and the business environment. Based on firm-level survey data and case data, this quantitative analysis confirms that administrative reform can significantly boost the favorable business environment and that administrative burden is a mediating variable during this process. The qualitative comparative analysis contends that there are three different configurations that can boost the favorable business environment: collaborative governance, government-driven, and enterprise-driven configurations. Theoretically, this paper extends the administrative burden theory, which brings companies into this theory as new actors. We also provide reform advice for practitioners.

Study of the Relationship Between Regional Development and the Activities of Small and Medium-Sized Businesses

Relevance. In modern economic conditions it is necessary to improve the management process of regional development, to find resources to increase the economic security of the region, to increase the sustainability of the development of regional socio-economic system in an uncertain external environment. An essential resource for the development of regions and the country as a whole is the activity of small business.The purpose is to develop an algorithm for comprehensive assessment of regional development, including the analysis of correlation with labor productivity of small and medium-sized enterprises.Objectives: to analyze approaches to the essence and content of the concept of "development" of the enterprise and the region in the modern conditions of the Russian economy; to formulate the main goals and directions of development of the enterprise and the region in accordance with differentiated approaches to the interpretation of development; to develop and apply the algorithm of complex assessment of regional development on factual materials; to determine strategic directions of formation of the environment of small and medium-sized entrepreneurship to strengthen the propulsive impact on the regional development.Methodology. The basis of the conducted research are the methods of system analysis, expert evaluation, correlation and regression analysis, methods of analysis and synthesis, graphic and tabular visualization of the obtained research results.Results. It is proposed to identify the propulsive impact of SME activity as a structural element of the regional socio-economic system on the final results of its development. The research and measurement of socio-economic development of the regions of the Central Federal District in accordance with the proposed algorithm, one of the stages of which is the assessment of the correlation between the level of development of the region and the productivity of small and medium-sized enterprises. On the basis of the obtained data the directions of creation of favorable guarantee conditions for the support of small and medium-sized entrepreneurship as a multiplier of socioeconomic development are determined.Conclusions. Within the framework of the conducted research the technology of research and assessment of the impact of small and medium-sized entrepreneurship on regional development with the subsequent transformation of the assessment results into strategic directions of formation of favorable and stimulating environment for small business as a driver of regional development was proposed.

Driving Financial Satisfaction in Technopreneurship: Unveiling the Moderating Influence of Government Support

Technopreneurship, a relatively recent form of entrepreneurship, has gained popularity among young people in Pakistan. Despite efforts from influencers and the government, awareness about technopreneurship remains limited, especially in the post-COVID-19 era, where it faces challenges in developing competitive entrepreneurs. This study aims to explore the link between technopreneurship and financial satisfaction, with a focus on the moderating role of government support. To achieve this, a research model was created based on the concepts of Technopreneurship, government support, and financial satisfaction. Researchers surveyed technopreneurs from across Pakistan using questionnaires and analyzed the collected data using SPSS. The results reveal a significant connection between technopreneurship and financial satisfaction, with this relationship being influenced by the level of government support. However, the findings suggest that the government needs to do more to foster technopreneurship by providing a favorable business environment and financial support. While this research focused on technopreneurs in Pakistan, future studies could refine the population scope or explore the impact of other factors on the relationship between technopreneurship and financial satisfaction.

ISSUES OF LOWERING THE UNEMPLOYMENT RATE IN THE DEVELOPMENT OF THE COUNTRY'S ECONOMY

This article discusses the ways of effective use of labor in the development of the economy of Uzbekistan, the economic content of the concept of unemployment and measures and directions for organizing socio-economic reforms aimed at creating a favorable business environment.

The Role of Behavioral Principles in the Functioning of Mesoeconomic Systems (Using the Example of Russian Technology Parks)

The effectiveness of the technopark’s functioning depends to a great extent on the quality of its management bodies. The article analyzes two of the most common management models: the short-term vision strategy model (technoparks as some kind of public services that ensure the emergence of innovative enterprises) and the long-term vision strategy model (technoparks not only as service providers to residents and other participants, but also as creators of a favorable business environment together with the state, universities and research organizations). Since the building of the organizational structure of management takes place in the existing institutional environment of the functioning of technoparks, a wide range of behavioral capabilities of management subjects arises.The purpose of the work is to analyze the behavior of management companies and resident companies of technoparks from the standpoint of behavioral and experimental economics, introduced into scientific circulation by Nobel laureates D. Kahneman and V. Smith, R. Thaler.The methodology of the study is based on a statistical analysis of the indicators of the VII National Rating of technoparks of Russia, presented on the GISIP platform of the Ministry of Industry and Trade of the Russian Federation. Methods of multivariate statistical analysis of the sample structure and identification of correlations of indicators are used.Results. The main model of innovative business development in Russian technoparks (more than 60% of the surveyed) participating in the rating is the short-term development model. Within its framework, management companies, limited by institutional requirements, adhere to the strategy of maximizing profitability from development activities in their behavior. The high risks of innovation activity of resident companies and the behavior of the management companies of technoparks, striving individually to achieve their goals, do not contribute to the realization of the general goal – the development of innovative business in the country. Examples of technoparks are given, in which the mechanisms of interaction between management companies and resident companies are revealed.

PROMISING AREAS FOR THE DEVELOPMENT OF THE CRYPTOCURRENCY INDUSTRY IN UKRAINE AS A TOOL FOR INTENSIFYING FOREIGN TRADE ACTIVITIES OF ENTREPRENEURIAL STRUCTURES

In recent years, the cryptocurrency industry has been developing rapidly, creating new opportunities and challenges for investors, entrepreneurs, and policymakers. Ukraine has become a promising destination for investment in cryptocurrencies and blockchain development due to its favorable business environment, highly educated workforce, and growing technology sector. Organizational and economic support for the development of foreign trade activities of Ukrainian businesses in the context of the cryptocurrency industry includes a thorough analysis and development of strategies to use these opportunities.In this article, we have considered some promising areas for the development of the cryptocurrency industry in Ukraine using general scientific and special methods of scientific knowledge, such as analytical methods, comparative analysis, methods of comparison, and generalization. From the potential of blockchain-based e-government services to the possibilities of mining and trading cryptocurrencies, the article examines the country's strengths and opportunities in this area and identifies ways to use them for future growth.To this end, the author analyzes the legal framework, the state and degree of development of the blockchain, the peculiarities and pace of mining, the degree of acceptance of cryptocurrencies in society, and the state and peculiarities of the development of cryptocurrency exchanges. Understanding the potential of the cryptocurrency industry in Ukraine, we believe that the strategic directions for promoting economic growth and technological innovation in the country are: a clear regulatory framework, a skilled workforce, abundant energy resources, and a growing number of cryptocurrency changes.These elements of organizational and economic support will help Ukrainian businesses to develop their foreign trade activities in the context of the growing influence of the cryptocurrency sphere, providing greater opportunities for investment and trade, as well as promoting the introduction of innovative technologies and increasing international competitiveness.

RECOVERY PROSPECTS OF THE ECONOMIC DEVELOPMENT OF THE TERRITORIES

The main goal of state and local development policies should be the creation of an economic system able to generate a sufficient amount of resources in the long term. The war lead to the destruction of critical infrastructure in many regions, material losses, millions of forced displacements, and demographic shifts. Traditional challenges of local governance and development in Ukraine have been augmented by new complications. In the course of the study, modern challenges for localities were analyzed and summarized. The concept of "affected territories" is proposed to be introduced into the normative regulation meaning territories or their parts that suffered from the conduct of hostilities or missile-bomb/artillery attacks. In order to make effective management decisions regarding the possibility of restoring such territories, it is necessary to develop a certain classification based on the degree of destruction and population loss (including due to evacuation/migration) and create a map of such territories. The restoration of Ukraine is the restoration of fully-fledged life in cities and villages and the formation of a new economy while taking into account new realities. The local private sector is the engine of economic activity and growth of the territory. Therefore, supporting entrepreneurship and smart investment in the development of small and medium-sized businesses must be a vital component of any recovery strategy. The article examines groups of enterprises that continued to work and develop during the war. Additional threats and risks of enterprise operation are summarized, and losses are grouped. “Losses from war” are understood as the value expression of the result of a change in the condition of objects due to a violation of their integrity or deterioration of their properties, and an increase in actual or possible socio-economic and other losses that occur during the war. It is substantiated in the research that the immediate factors in the process of restoration of territories should be working with investors, creating a favorable business environment and supporting entrepreneurial initiatives. Prospective areas of investment are summarized, taking into account modern changes in market needs. Keywords: economic recovery of the territories, relocation of enterprises, recovery plan, prospective directions of investment.

The Role of Competition Commission of India In Navigating The Turbulent Waters of Indian Market Dynamics

Competition law encompasses a set of rules and regulations designed to protect and promote competition, with the ultimate goal of maximizing consumer welfare. Competition law has gone through several stages of development, and it is only in recent times that its significant alteration has aligned more appropriately with the contemporary economic and political landscape on a global scale. During the early stages of competition law, it was primarily formulated by developed economies. Consequently, this exerted influence on developing economies such as China and India, prompting them to adopt competition laws within their own jurisdictions. This adoption has subsequently facilitated a more favorable business environment, even in developing countries, as competition operates on an international scale and possesses a global reach. In the absence of competition rules, a nation may have a range of drawbacks, including negative impacts on consumer welfare, reduced product quality, and limited market options, among others. The Competition Commission of India serves as the regulatory body responsible for overseeing competition within the Indian market and is endowed with the authority to implement competition laws. Competition law refers to the legal framework that addresses various obstacles and distortions in the market. The entity responsible for monitoring and regulating market operations is known as the competition regulator. The commission is legally obligated by the Competition Act, 2002, to proactively mitigate anti-competitive acts, foster and maintain competition in markets, safeguard consumers' interests, and uphold the unrestricted freedom of trade exercised by other participants in the market. This research article seeks to examine and analyze the Competition Commission of India, including its powers, functions, enforcement mechanisms, the regulatory contributions made by CCI in the field of competition regulation, and the significant judgments delivered by CCI.