Theoretical and Applied Economics (Dec 2024)
The impact of doing business indicators on economic growth in emerging market economies: a cross-sectional analysis
Abstract
This study investigates the relationship between economic growth and Ease of Doing Business (EDB) indicators in emerging economies. By analyzing cross-sectional data from 30 emerging market economies, the study assesses the impact of EDB indicators (Doing Business 2020) on Gross Domestic Product (GDP) per capita. The findings indicate that Singapore has the most favorable business environment, while China exhibits the highest GDP level. Through multiple regression analysis, the study reveals that changes in EDB indicators, particularly related to construction permits, credit availability, property registration, and cross-border trade, explain 81% of the total variation in economic growth. Dealing with construction permits and accessing credit have a negative impact on GDP, whereas property registration and cross-border trade have a positive influence. Among the selected emerging economies, cross-border trade and credit availability significantly affect GDP. The study concludes that a country’s business regulations play a crucial role in determining economic growth, emphasizing the importance of identifying and implementing necessary reforms for fostering growth in emerging markets.
