Economic Growth and the Business Environment

Abstract

This article investigates the business environment in Sub-Saharan Africa. Previous study has discovered that the ease of conducting business is related to economic growth since it influences the level of business. The goal of this study is to see if the performance of ease of doing business is related to economic growth in Sub-Saharan Africa, and if so, which ease of doing business criteria are particularly important. I discover that different ease of doing business criteria have varying effects on GDP using panel data for 44 countries from 2006 to 2016 using fixed effects analysis. Principal component analysis, on the other hand, shows that a country's GDP is positively related to its combined ease of doing business score. The results are comparable when the sample is separated into income and democracy levels. As a result, it is vital for governments in Sub-Saharan Africa to make efforts to create a favorable business environment in order to boost commercial prosperity and economic advancement.

Keywords: economic growth, business environment, commercial prosperity, economic advancement.