Analyzing the Impact of EDB on Employment in Agriculture, Industry and Services Sectors (case study: 31 provinces of Iran)

Document Type : Research Paper

Authors

1 Ph.D. Student in Entrepreneurship, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran

2 Associate Professor in Economics, University of Mazandaran, Babolsar, Iran

3 Assistant Professor in Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran

Abstract

This study aimed to investigate the impact of improving business environment on employment with considering the importance of employment and its impact on improving the business environment. For this purpose, in estimating the model in the form of a basic model at three levels (agriculture, industry and services) and two scenarios at each level, the method of panel data and seasonal data (2017:3 -2019:2) of 31 provinces has been used. The results of the estimations in each sector show that in the provinces where the employment rate of agriculture or industry or services is higher than other provinces, the effect of EBD on employment rate is positive. Of course, the sensitivity of the employment of the agricultural sector to the EDB that has a low elasticity and is equal to 0.34. Another finding is that, unlike in developed and developing provinces, where the EDB has no effect on the employment rate of the agricultural sector; In less development provinces, this effect is positive and equal to 0.1. Also, the positive effect of EDB on industrial employment rate has been observed only for developed provinces with a coefficient of 0.87. However, in this group of provinces, improving the business environment has an inverse effect equal to -0.03 on the employment rate of services and does not have a significant effect in developing and less development provinces.

Keywords

References

  1. Alizadeh, N. (2016). Developing and improving the business environment is a prerequisite for attracting foreign direct investment in achieving economic growth, Economic Magazine, No. 7 and 8, 33-51. (In Farsi)
  2. Anderson, J., & Gonzalez, A. (2012). Does doing business matter for foreign direct investment. Washington, DC: Te World Bank.
  3. Babaki, R., & Salimifar, M. (2015). The role of business environment and economic freedom on economic growth in selected countries by using panel data during 2004-2013. Journal of Economy and Regional Development, 21(8), 121-152. (In Farsi)
  4. Bailey, J. B., & Thomas, D. W. (2017). Regulating away competition: The effect of regulation on entrepreneurship and employment. Journal of Regulatory Economics, 52(3), 237-254.
  5. Bakhtiyari, S. & Shayesteh, A. (2012). Investigation of the of ease of doing business on economic growth in selected countries with emphasis on Iran, Financial Economics, 6(19), 175-204. (In Farsi)
  6. Bayraktar, N. (2013). Foreign direct investment and investment climate. Procedia Economics and Finance, 5, 83-92.
  7. Canare, T., Francisco, J. P., & Morales, J. F. (2019). Long-and short-run relationship between firm creation and the ease and cost of doing business, International Journal of the Economics of Business, 26(2), 249-275.
  8. Corcoran, A., & Gillanders, R. (2012). Foreign direct investment and the ease of doing business. Review of World Economics, 151(1), 103-126.
  9. Dehghan Shabani, Z., & Afarineshfar, S. (2015). The effects of doing business on foreign direct investment in Iran and selected countries. Iranian Journal of Economic research, 20(62), 1-30. (In Persian)
  10. Iran Statistics Center, Monitoring Plan of National Indicators of Iranian Business Environment. (In Farsi)
  11. Haidar, J. I. (2012). The impact of business regulatory reforms on economic growth. Journal of the Japanese and international economies, 26(3), 285-307.
  12. Hekmati Farid, S., Mohamad zadeh, Y., & Khazali, D. (2016). The impact of business regulatory reforms and intellectual property rights on economic growth in upper middle income countries. Quarterly Journal of Economic Growth and Development Research, 6(22), 130-119. (In Farsi)
  13. Jayasuriya, D. (2011). Improvements in the world bank's ease of doing business rankings: Do they translate into greater foreign direct investment inflows?, The World Bank.
  14. Jenkins, R. (2006). Globalization, FDI and employment in Viet Nam. Transnational corporations, 15(1), 115-142.
  15. Katoka, B., & Kwon, H. J. (2018). Business regulations and foreign direct Investment in Sub-Saharan Africa: Implications for regulatory reform. In Financing Sustainable Development in Africa (pp. 63-91).
  16. Mehrabani, F., Abdollahi, F., & Basirat, M. (2016). Considering the effects of doing business on economic growth for Iran, MENA and OECD countries by GMM method. The Macro and Strategic Policies, 4(13), 65-96. (In Farsi)
  17. Mosavi, S., Alambeigi, A., & Rezaee, A. (2016). Prediction of intention to entrepreneurial startup behavior among Agriscience students based on their employability’s dimensions, Iranian Journal of Agricultural Economics and Development Research, 46(4), 783-791. (In Farsi)
  18. Munemo, J. (2014). Business start-up regulations and the complementarity between foreign and domestic investment. Review of World Economics, 150(4), 745-761.
  19. Norbäck, P. J., Persson, L., & Douhan, R. (2014). Entrepreneurship policy and globalization. Journal of Development Economics, 110, 22-38.
  20. Shahnazi, R., & Dehghani Shabani, Z. (2009). Investigating the impact of business space on economic growth in selected countries, Journal of Economic Research, 11(42), 161-185. (In Farsi)
  21. Shirkavand, S. (2011). Investigating the effective factors on measuring and improving the business environment in Iran, Tehran Chamber of Commerce, Industries and Mines. (In Farsi)
  22. Sokhiei, E., Fahimifar, F., & Fahimifar, F. (2014). Monitoring the performance and ranking of provinces based on indicators of the Ministry of Economic Affairs and Finance. Economic Magazine, 15(11), 5-26. (In Farsi)

World Bank, (2018). Doing business, international bank for reconstruction and development

Iranian Journal of Agricultural Economics and Development Research
Volume 52, Issue 2
May 2021
Pages 423-440

Files

Share

How to cite

Statistics