The impact of selected elements of the business environment on employment and production of companies in the EU - a comparison of companies controlled by domestic and foreign persons

Soňa Kleštincová and Jana Kubicová

International Journal of Economic Policy in Emerging Economies, 2023, vol. 17, issue 1, 118-138

Abstract: Previous studies focused on identifying key dimensions of the business environment that affect FDI, at the same time, there is a deficiency of literature that would examine how the business environment affects indicators such as employment and production. This research looks for the business environment dimensions that most frequently influence the distinct types of business activities. By using a cross-sectional regression analysis, we examined how the number of jobs, the turnover of companies and the volume of production were shaped by the business environment of selected countries. Key findings reveal that the business environment affects employment areas more than production. The greatest impact on production and employment stems from paying taxes, getting electricity, resolving insolvency, and enforcing contracts. These findings can help in the future policymaking process.

Keywords: business environment; competitiveness; foreign control of enterprises. (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijepee:v:17:y:2023:i:1:p:118-138

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