Multinational Firm Growth and Sustainability Responses to Dynamics of Business Regulations in Host Market

Damto Basha Chewaka and Changzheng Zhang
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Damto Basha Chewaka: Business School, Hohai University, Nanjing 211100, China
Changzheng Zhang: Business School, Hohai University, Nanjing 211100, China

Sustainability, 2021, vol. 13, issue 24, 1-15

Abstract: Dynamics in business regulations measured by ease of doing business is a new approach that indicates countries’ business climate reforms toward suitability for investment growth. The present study took three variables from the ease of doing business data and evaluated them toward predictive power of FDI flow to 19 Sub-Saharan African countries by using fixed-effect model. Based on the analysis, the official time, procedures, costs, and minimum capitals in starting a business stage, enterprise registrations and official permissions of the firm establishment had a material effect on investment growth. Even though, on one side trade openness and the growing market size was seen as an opportunity, the deep-rooted corruption and landlocked was the trap for the smooth growth of firms in the region.

Keywords: ease of doing business; multinational firms’ growth; official procedures; business regulations; official time; enterprise registrations; market size (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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