Evaluation of influence of corruption, lending interest rate and other components on ease of doing business: A policy-making and legal implications

Abstract

The research paper experimentally examines the influence of corruption control (CC), lending interest rate (LIR), regulatory quality (RQ), government effectiveness (GE), and domestic credit to the private sector (DCPS) on the ease of doing business (EDB). To reach the expected objective, the investigation employs balanced data for all six countries of the Western Balkans, covering the period 2014–2020, employing regression analysis with fixed effects. The approach and parameter selection are guided by the insights from Nageri and Gunu (2020) as well as Belloumi and Alshehry (2021). The discoveries of the research provide evidence that CC, LIR, and RQ have a statistically significant negative influence, versus DCPS has resulted in a significant positive influence on the EDB. The originality and creativity of this investigation lay in the fact that it is a combination of economic and governing variables that are immediately reflected in the favorable environment for doing business. The discoveries of the investigation will be beneficial to the expansion of existing literature in the academic sphere and serve as avenues for proactive discussions among business managers, and students, as well as the policy-making structure concerning the possible implications that can be drawn based on the results of the research.