Industrial development and business environment improvement strategies in the provinces of the country

Document Type : applicative

Authors

Associate Professor, Department of Economics, Payame Noor University, Tehran, Iran

10.30473/jier.2026.62033.1533

Abstract

The purpose of this study is to provide strategies to improve business environment in different provinces of the country with emphasis on their industrial level. For this purpose, by analyzing different points of view, the factors affecting the business environment were examined and introduced in the form of economic, infrastructure, institutional, legal and executive factors. In the following, the factors were measured separately for industrial, semi-industrial and traditional provinces and seasonally for the period (2011-2020) and by presenting a model, the effect of each of the factors on the provincial business index was estimated with a panel data approach. The results of model estimation in industrial provinces showed that infrastructure, institutional, executive and economic factors respectively have the greatest impact on business environment promotion. Also, in semi-industrial provinces, infrastructural, legal, and economic factors, and in traditional provinces, infrastructural, legal, and economic factors have the greatest impact on improving the business environment, respectively. The analysis of the results of this study indicated that in order to improve the business environment of the provinces of the country, it is necessary to update the legal frameworks in accordance with the industrial development of the provinces and to strengthen the infrastructures in the industrial and semi-industrial provinces.

Keywords


  • Abdu, M., Jibir, A., Abdullahi, S. et al. (2021). Drivers of manufacturing firms’ productivity: a micro-perspective to industrialization in Nigeria. SN Bus Econ 1, https://doi.org/10.1007/s43546-020-00026-5
  • Afshar, M. (2013). The role of government in the business environment. Faculty of Entrepreneurship, University of Tehran. (in persian)
  • Amini, A. (2013). Pathology of the business environment of Iran's economy: Opportunities and challenges ahead; Diagnosis of issues and challenges facing Iran's business environment. In The First Conference on Sustainable Development with an Approach to Improving the Business Environment. (in persian)
  • Bafandeh Zendeh, A., Keikhosrovi, A., & Bagheri Farahbakhsh, S. (2021). Investigating the factors affecting the improvement of the domestic business environment and its role in Iran's success in international trade. In The 6th International Conference on Management, Global Trade, Economics, Finance and Social Sciences. (in persian)
  • Baltagi, B. (2005). Econometric Analysis of Panel Data, Publisher: Wiley.
  • Berg, J. and Cazes, S. (2007), The Doing Business Indicators: Measurement Issues and Political Implications, Employment Analysis and Research Unit, Economic and Labor Market Analysis Department, Geneva: ILO.
  • Cepel, M., Stasiukynas, A., Kotaskova, A. and Dvorsky, J., (2018). Business environment quality index in the SME segment. Journal of Competitiveness, 10 (2), 21-40.
  • Dehghani, H., Akhtari, A. P., Ghazikhani, S. F., Habibi, Z., & Mirani, N. (2017). Investigating, monitoring and prioritizing the factors affecting the business environment of Kurdistan province using the Analytical Hierarchy Process (AHP). In The First International Conference on Economic Planning, Sustainable and Balanced Regional Development: Approaches and Applications. (in persian)
  • Desoto, H. (2001). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. Finance & Development: A Quarterly Magazine of the IMF, 38(1), 4-7.
  • Djankov, S & Mcliesh, C & Ramalho, M. (2006), Regulation and growth, Economics Letters, 92 ,395–401
  • Driemeier, M.H. and Pritchett, L. (2010), How Business Is Done and the Doing Business Indicators: The Investment Climate when Firms Have Climate Control, The WorldBank, Research Working.
  • Dvorsky, J., Gavurova, B., Čepel, M. & Červinka, M. (2020), Impact of Selected Economic Factors on the Business Environment: The Case of Selected East Eurpean, Polish Journal of management Studie,2. 96-110
  • Economic Studies Office of the Majlis Research Center. (2019). Monitoring investment security by provinces and fields of work (Subject Code 220, Serial No. 16619). (in persian)
  • Fallah-Haghighi, N., Armaghan, N., & Bijani, M. (2017). Analysis of the business environment pathologies in Yazd province. Journal of Technology Development Management, 5 (3), 143–167.
  • https://doi.org/10.1007/s43546-020-00026-5. (in persian)
  • Hulleman, W., Marijs, A. J. (2021). Economics and Business Environment,2, 392 - 17
  • Jafari Eskandari, M., Ali Ahmadi, A., Khaleghi, G., & Heydari, M. (2010). Evaluation of Iran's industrial business environment in support of the private sector with a balanced scorecard approach., International Journal of Industrial Engineering and Production Management, 21 (2). (in persian)
  • Kiyentei Benneth, G. & Humphrey Obinn, A. (2023), International of Research and Inovation in of Social of Scieince, The Impact of Macro-Environmental Factors on Business Performance, 4(6),1837-1843
  • Lee, S. (2008), The World Bank’s Employing Workers Index: Findings and Critiques A Review of Recent Evidence, International Labor Review, 147(4), 416–432.
  • Levine, A., Lin, C. F. & Chu, C. S. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties, Journal of Econometrics. 108, 1-24.
  • Makyān, S. N., Meybodi Emami, M., Eshrati, S., & Ahmadi, Z. (2013). Business environment, growth strategy: A comparison of Islamic countries in the MENA region and the OECD. Quarterly Journal of Economic Growth and Development, 311, 76–84. (in persian)
  • Meydari, A., Nasiri Aghdam, A., & Mortazavifar, Z. (2013). Evaluation of barriers to doing business in Zanjan province. *Economic Research, 48 (3), 129–147. (in persian)
  • Mohammadi Khyareh, M., & Rostami, N. (2019). Investigating and prioritizing factors affecting the business environment in Golestan province. Journal of Economics and Regional Development Research, 26, 128–139. (in persian)

Moradi, M. A. (2014). Business environment: Theories, indicators and techniques (2nd ed.). University of Tehran Press. (in persian)