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Article

Business environment as the determinant of economic growth

Does the business determine economic growth? What factors do provide the stable business development? Recent studies explore business environment as a key factor of prosperous business functioning. The subjective estimates of the business obstacles based on the firm-level World Bank Enterprise Survey (WBES) are aggregated on the country level. Using the country average values of 13 business obstacles 128 countries are classified into six clusters. Cross tables analysis and correlation analysis find that there is a correlation between the prevalence of the business obstacles and national income growth, export growth, high-technology export, expenditure on R&D. Considering regional differences the results show the priority of the business obstacles that could be used in policymaking.