Document Type : Research Paper
Authors
1 Assistant Professor of Economics, Department of Economic Sciences, Faculty of Social Sciences, Mohaghegh Ardabili University, Ardabil, Iran
2 PhD student of public Economics, Department of Economic Sciences, Faculty of Economics and Social Sciences, Bu Ali Sina University, Hamedan, Iran
3 Assistant professor, Department of Accounting, Faculty of Management and Accounting, Tolou-e-Mehr Non-Profit University, Qom, Iran
4 Assistant Professor of Economics, Department of Economic Sciences, Faculty of Social Sciences, Mohaghegh Ardabili University, Ardabil, Iran.
Abstract
One of the most important macroeconomic goals of countries is to create the necessary conditions to promote continuous and stable economic growth. The ease of business environment as one of the most important factors to achieve this goal can be considered. Economic fragility is one of the main variables affecting the ease of business environment; Therefore, reducing economic fragility can provide a good way for ease of business environment. To reduce economic fragility, its components can be examined, the most important of them are reduction of recession and poverty, prevention of brain drain and labor force, and balanced economic development. Strengthening these components will lead to the creation of a suitable environment for a safe investment and business. Therefore, this study intends to investigate the impact of economic fragility on the ease of business environment with using the Generalized method of moments (GMM) in selected countries during the period 2019-2006. The results show that the components of economic fragility (economic recession and poverty, unbalanced economic development and brain drain and labor force) have a negative and significant impact on the ease of doing business in the selected countries. The results also show that the variables of financial development and rule of law have a positive and significant effect on the ease of business environment and the variable of government effectiveness has not a significant effect on the ease of business environment.
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