Khan, Mohd Na ed
A icle
Assessmen o impac o coun y business anking on
economic de elopmen : An empi ical analysis
Global Business & Finance Re iew (GBFR)
P o ided in Coope a ion wi h:
People & Global Business Associa ion (P&GBA), Seoul
Sugges ed Ci a ion: Khan, Mohd Na ed (2024) : Assessmen o impac o coun y business anking
on economic de elopmen : An empi ical analysis, Global Business & Finance Re iew (GBFR), ISSN
2384-1648, People & Global Business Associa ion (P&GBA), Seoul, Vol. 29, Iss. 3, pp. 30-41,
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E-mail: m.na [email protected]
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ⓒ 2024 People and Global Business Associa ion
GLOBAL BUSINESS & FINANCE REVIEW
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o inancial sus ainabili y and people-cen e ed global business1)
A
ssessmen o Impac o Coun y Business Ranking on Economic
De elopmen : An Empi ical Analysis
Khan, Mohd Na ed†
A
ssis an P o esso , College o Adminis a i e and Financial Sciences, Saudi Elec onic Uni e si y, Riyadh, KSA
A
B S T R A C T
Pu pose: The Wo ld Bank's "Ease o Doing Business" index, among o he business ankings, can help a coun y's
economic p og ess by a ac ing o eign in es men s, encou aging en ep eneu ship, and imp o ing he business
clima e. Supe io ankings indica e an op imised en i onmen o business ac i i ies, which could boos in es men s,
job oppo uni ies, and o e all economic g ow h. The esea ch is conduc ed o assess he impac o a coun y's
business anking on economic de elopmen .
Design/me hodology/app oach: The S uc u al Equa ion Modelling (SEM) me hod was used o assess he impac
o a coun y's business anking on i s economic ajec o y. The o icial Wo ld Bank epo was used o ob ain
da a om 2015 o 2021. Panel da a o Global Inno a ion Ranking, Ease o Doing Business Ranking, and Business
F eedom Ranking om 2016 o 2021 is he basis o his s udy. The esea che has used a concep ual amewo k
o es ablish and unde s and he dependence among he dependen and independen a iables. Fo measu ing s a -
is ical associa ion, he esea che has used s uc u al equa ion modelling and pa h diag am along wi h co ela ion
and eg ession analysis. The co ela ion has been used o assess hei associa ion, while he esea che has used
eg ession o de e mine he impac o coun y business anking.
Findings: The in es iga o in es iga ed he impac o India's s andings in he Global Inno a ion Ranking, Ease
o Doing Business Ranking, and Business F eedom Ranking on i s Economic De elopmen , speci ically GDP, in
his s udy. The s udy's indings show ha India's business ankings ha e a signi ican impac on i s economic
de elopmen . Such global business ankings p o ide c i ical da a poin s o policymake s, businesses, and in es o s
o make in o med decisions, he eby p omo ing economic g ow h. Fu he mo e, he s udy examined he e ec s
o GDP g ow h on he combus ion o ossil uels, as measu ed in million onnes, emphasising he en i onmen al
consequences o economic expansion.
Resea ch limi a ions/implica ions: I 's impe a i e o no e ha his is jus an es ima e, and he ac ual ela ionship
be ween he a iables in he popula ion may di e om his es ima e. The es ima e is based on he sample da a
used o i he model and may no accu a ely e lec he ue ela ionship in he popula ion. Fu he analysis and
in e p e a ion o he model's goodness o i and conside a ion o o he ac o s, such as ou lie s o omi ed a iables,
a e essen ial o ully app ehend he ela ionship be ween "GIR" and he dependen a iable. The esul s o global
business ankings can help policymake s iden i y a eas o imp o emen in hei coun y's business en i onmen .
By ocusing on he a eas whe e hei coun y is lagging behind, hey can de elop policies and ini ia i es o a ac
mo e in es men , c ea e a mo e a ou able business en i onmen , and suppo economic g ow h. Businesses can
use he esul s o global ankings o e alua e po en ial loca ions o expansion o in es men . I can p o ide insigh s
in o he ease o s a ing and unning a business, access o c edi , p ope y igh s p o ec ion, and o he impo an
ac o s o businesses. In es o s can also use he esul s o global ankings o make in o med decisions abou whe e
o in es hei capi al. Highe ankings indica e a mo e s able and a ou able business en i onmen , leading o
ⓒ
Copy igh : The Au ho (s). This is an Open Access jou nal dis ibu ed unde he e ms o he C ea i e Commons A ibu ion
Non-Comme cial License (h ps://c ea i ecommons.o g/licenses/by-nc/4.0/) which pe mi s un es ic ed non-comme cial use, dis ibu ion
,
and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
Khan, Mohd Na ed
31
I. In oduc ion
Acco ding o Besley (2015) and Fe nández-Se ano
and Rome o (2014), a posi i e business clima e is
usually conside ed a key de elopmen de e minan .
The subjec o how simple i is o do business and
he elemen s ha make i mo e di icul o easie
o do so is a decisi e issue ela ed o economic g ow h
(Rome o Fe nández & Se ano, 2014).
This idea has led se e al adminis a i e, academic, and
o he en i ies o c ea e esea ch p ojec s o p og ammes
o p omo e and simpli y a be e legal ou line (A uada,
2007, K e e , 2013). These "Be e Regula ion" legisla ion
e o m p ojec s o en in ol e he building blocks
o enhancing he business clima e. In addi ion o
policy o mula ion, ins umen a ion was used o e alua e
he e ec s o hese policies, iden i y how na ions
change o e ime and c ea e a coun ies' hie a chy
wi h supe io amewo ks. Some imes hese s udies
a e summa ized in anking, and al hough hey a e
excessi ely simpli ied, hey can a ely be igno ed
(Michaels 2009). These ea u es o he coun y's
Business a ings and hei impac on economic
de elopmen a e he subjec s o his s udy. In he
li e a u e, he opic o economic expansion is well-
ep esen ed. The mos equen ly ci ed a e A es is
e al. (2001), Beck and Demi güç-Kun (2006), and
Le ine (1998).
Nume ous esea ch has employed he coun y
business anking; howe e , hey o en only conside
one speci ic ins an (Co co an and Gillande s, 2015;
Mo is and Aziz, 2011; Schue h, 2011). The s udy
aims o de ine he ela ionship be ween he business
anking o a coun y. (Global Inno a ion Ranking,
Ease o Doing Business Ranking and Business
F eedom Ranking) and he weal h c ea ed in a na ion
as calcula ed by he GDP g ow h a e and he numbe
o egis a ions o new i ms.
Figu e 1 shows India's Global Ranking o Global
Inno a ion Ranking, Ease o Doing Business Ranking
and Business F eedom Ranking. This igu e shows
ha he coun y is making e e y possible e o o
come up in he global anking.
Since 2015, India has consis en ly anked among
he 50 bes coun ies in he Global Inno a ion Index
(GII). In he 2021 edi ion o he GII, India was anked
48 h ou o 141 economies. Wo ld In ellec ual P ope y
O ganiza ion (WIPO) published GII and measu es
a coun y's inno a ion pe o mance based on a ious
ac o s, including esea ch and de elopmen , c ea i i y,
and ma ke sophis ica ion. India has consis en ly
imp o ed i s posi ion on he ease o doing business
index o e he pas ew yea s. The Wo ld Bank
publishes he index annually and measu es he egula o y
en i onmen o s a ing, ope a ing, and closing a
business in 190 economies. India has had a ela i ely
s able anking in he Index o Economic F eedom
o e he pas ew yea s and has emained in he
bo om hal o coun ies anked.
Recen epo s indica e ha India's R&D expendi u e
on o al GDP luc ua es, eaching i s peak in 2020
and lowe in 2016. The unemploymen a e has
emained ela i ely s able, wi h a sligh inc ease in
2020. The numbe o business egis a ions has
s eadily inc eased, peaking in 2021. The GDP g ow h
a e has also luc ua ed, wi h a signi ican dec ease
inc eased in es men and economic g ow h. Global business ankings gene ally p o ide aluable in o ma ion ha
policymake s, businesses, and in es o s can use o make in o med decisions and suppo economic de elopmen .
O iginali y/ alue: I he eby a es ha he esea ch pape I ha e submi ed is he esul o my own independen
and unique labo . All o he sou ces om which he hough s and passages we e de i ed ha e been p ope ly
c edi ed. The wo k has no been submi ed o publica ion anywhe e and is de oid o any ins ances o plagia ism.
Keywo ds: Global inno a ion anking, Ease o doing business anking, Business eedom anking, GDP g ow h,
En i onmen deg ada ion
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 3 (APRIL 2024), 30-41
32
in 2020 and a ebound in 2021. I is impe a i e o
conside he con ex and addi ional ac o s ha may
ha e in luenced hese ends when e alua ing he
heal h o he Indian economy. The e is conside able
li e a u e on he in luence o s a e business anking
on economic de elopmen . Gene ally, highe business
ankings a e belie ed o a ac o eign in es men ,
encou age en ep eneu ship, and d i e inno a ion, which
in u n boos economic g ow h and de elopmen .
Se e al pieces o esea ch ha e ound a posi i e
co ela ion be ween a coun y's business anking and
a ious indica o s o economic de elopmen . Howe e ,
i is impo an o no e ha business ankings a e
no he only ac o a ec ing economic g ow h. They
should be conside ed oge he wi h o he ac o s such
as mac oeconomic s abili y, in as uc u e de elopmen
and educa ion le els. Addi ionally, some s udies ha e
ound ha business ankings can ha e limi a ions
and may no co ec ly e lec he complexi y o he
business en i onmen in a gi en na ion. O e all, while
business ankings can p o ide aluable insigh s in o
a coun y's business en i onmen , hey should be used
in conjunc ion wi h o he sou ces o in o ma ion and
wouldn' be he sole de e minan o in es men o
business decisions.
II. Re iew o he Li e a u e
The ideal amewo k o company g ow h has long
been a opic o discussion among academics, indus y
p o essionals, and economic ac o s. Examining how
pa icula elemen s, such as he sys em o inance,
he dynamics o small en e p ises, o hei ing ess
o inancing, in luence his g ow h is one app oach
o accomplish his. Howe e , o he o ganiza ions ha e
aken a di e en ou e. They c ea ed unique me ics
o analyzing he ease o doing business and/o
esul ing compe i i eness, linking he egula o y and
business en i onmen o compe i i e capabili ies.
An essen ial se o e en s ha ha e occu ed
epea edly since he u n o he cen u y is suppo ed
by he igh connec ion be ween enhancing he legal
en i onmen and g ow h. The landma k s udy o
McLiesh, Djanko and Ramalho (2006) suppo s his
connec ion. This a gumen is u he suppo ed by
he adop ion o be e egula o y policies, which ha e
become common in Eu ope since he u n o he
cen u y (Radaelli 2007).
Howe e , some schola s link his mo i a ion o
g ea e egula ion o he desi e o close he gap be ween
he lawmake and he populace wi hou di ec ly
con adic ing he p eceding asse ion. Following he
ac ions ha he EU ook o handle he ecen economic
slump and he necessi y o es o e he c edibili y o
he au ho i y, his gap be ween he wo has d ama ically
Figu e 1. Coun y global anking
Khan, Mohd Na ed
33
expanded (de las He as, 2019). None heless, he e
is a s ong co ela ion be ween inc eased egula ion
(legisla ion) and economic de elopmen .
The Wo ld Bank has been eleasing i s coun y
business anking epo , a hie a chical na ion index,
since 2004. The index is made up o a main indica o
called "ease o doing business" ha is a unc ion
o sub-indica o s, including "s a ing a business",
"ge ing c edi ", "ge ing elec ici y", " egis e ing
p ope y", "disbu sing axes", "de e mining insol ency",
"en o cing con ac s", and "shielding mino i y in es o s".
Nume ous e alua ions, including one by an impa ial
panel, ha e been conduc ed on he epo 's eliabili y
and me hodology (A uda, Azou , Labelle, & Wol ,
2013). Se e al laws in he coun y's business anking
ha e been iden i ied and a e subjec o con inuous
c i icism.
Simila ly, Ani (2015) aims o esea ch how business
accessibili y a ec ed economic de elopmen in se e al
Asian coun ies in 2014. The s udy examined 29
economies in Eas , Sou heas , and Sou h Asia. The
10 Doing Business Indica o s (DBI) o he Wo ld
Bank we e used as business ease indica o s, while
he GDP was used as an economic g ow h indica o .
Mul iple eg ession analysis is used in he s udy o
examine he connec ion be ween he ease o doing
business and economic de elopmen .
Klappe , Lae en, and Rajan (2004) esea ched o
asce ain how he business clima e a ec ed he admission
o new en e p ises in o an economy. They use c oss-coun y
da a om he Amadeus da abase on businesses in
Wes e n and Eas e n Eu ope. Acco ding o he epo ,
en ance is made mo e di icul by high egula o y
obs acles, pa icula ly in sec o s like compu e se ices
and communica ions ( elephone, wi eless, e c.), whe e
en y cos s a e expec ed o be high. They poin ou
ha no all es ic ions impac how a business en e s
he ma ke bu ha excessi e bu eauc a ic con ol
o en ance ends o ha e nega i e impac s.
Finally, he sec ion showed ha much esea ch
showed ha a ac i e business condi ions bene i
a coun y's economic de elopmen . This esea ch seeks
a mo e ho ough analysis u ilizing panel da a om
2016 o 2021 while d awing on he abo emen ioned
wo ks. Based on he li e a u e, he ollowing es ima ed
amewo k in Figu e 2 has been concep ualized, which
shows he impac o Global Inno a ion Ranking, Ease
o Doing Business Ranking and Business F eedom
Ranking on Economic G ow h (GDP).
III. Impac s o Economic G ow h on
he En i onmen
Economic g ow h has been shown o ha e nega i e
impac s on he en i onmen . As economies g ow,
hey consume mo e esou ces and gene a e mo e was e
and pollu ion, leading o en i onmen al deg ada ion
(Kuzne s, 1955). Fo example, he apid indus ializa ion
and u baniza ion o de eloping coun ies like China
and India in ecen decades ha e inc eased ai and
wa e pollu ion, de o es a ion, and biodi e si y loss
(Liu e al., 2016).
Economic expansion has indi ec e ec s in addi ion
o i s di ec impac on he en i onmen . Fo example,
people end o consume mo e ene gy and goods as
incomes ise, inc easing g eenhouse gas emissions and
esou ce deple ion (S e n, 2004). Fu he mo e, pu suing
economic g ow h may lead o policies highligh ing
sho -pe iod economic expansions o e long-pe iod
en i onmen al sus ainabili y (Die z e al., 2007).
Despi e hese nega i e impac s, economic g ow h
can also p o ide oppo uni ies o en i onmen al
imp o emen . Fo example, ad ances in echnology
and inno a ion can lead o mo e p o icien use o
Figu e 2. Concep ual amewo k
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 3 (APRIL 2024), 30-41
34
esou ces and cleane p oduc ion p ocesses (G ossman
and K uege , 1995). Addi ionally, highe incomes
may allow indi iduals and go e nmen s o in es
in en i onmen al p o ec ion and es o a ion e o s
(Dasgup a, 2001).
Ca ahe and Buckley (2000) explo ed he concep
o s a egic en ep eneu ialism, ocusing pa icula ly on
he challenges i p esen ed in a global esea ch con ex .
They disco e ed ha he e we e signi ican global
p oblems when analyzing s a egic en ep eneu ialism. This
included issues wi h he concep ualiza ion and
ope a ionaliza ion o key cons uc s, me hodological
inconsis encies ac oss s udies, and cul u al biases ha
impac ed he gene alizabili y o indings. Thei wo k
shed ligh on he need o a mo e consis en and
comp ehensi e app oach o esea ching en ep eneu ial
s a egies on a global scale.
Byoun and Rhim (2005) conduc ed es s on wo
p ominen heo ies o capi al s uc u e: he pecking
o de heo y and he adeo heo y. Th ough hei
es s, hey ound e idence ha was mo e consis en
wi h he pecking o de heo y han he adeo heo y.
Speci ically, hei esul s sugges ed ha i ms p e e
in e nal inancing o ex e nal inancing, and when
ex e nal inancing is needed, hey p io i ize deb o e
equi y. This con as ed wi h he adeo heo y, which
posi s ha i ms balance he bene i s and cos s o
deb and equi y o each an op imal capi al s uc u e.
Chen and Zheng (2014) in es iga ed he ela ionship
be ween CEO enu e and he isk- aking beha io s
o companies. They disco e ed ha as CEO enu e
inc eased, he e was a co esponding ise in he le el
o isk- aking by he i m. The longe a CEO emained
in hei posi ion, he mo e likely hey we e o engage
in s a egies and decisions ha ca ied highe le els
o isk. This could be due o he inc easing con idence
o he p essu e o achie e ou s anding pe o mance
as hei enu e p og esses.
Luo and Jackson (2012) del ed in o he ela ionship
be ween execu i e compensa ion, owne ship s uc u e,
and i m pe o mance in Chinese inancial co po a ions.
Thei indings indica ed ha he e was a signi ican
ela ionship be ween he s uc u e o execu i e
compensa ion and i m pe o mance. Pa icula ly, i ms
wi h mo e equi y-based compensa ion s uc u es ended
o pe o m be e . Addi ionally, he owne ship s uc u e,
especially he concen a ion o owne ship, played a
c ucial ole in de e mining execu i e compensa ion
pa e ns and ul ima ely impac ing i m pe o mance.
In hei esea ch pape i led "A e In e na ional
Indices Good P edic o s o Economic G ow h? Panel
Da a and Clus e Analysis o Eu opean Union
Coun ies", Noguei a and Madaleno (2017) Panel
da a analysis and clus e analysis we e used o examine
he connec ions be ween global indices o economic
eedom, co up ion, compe i i eness, and economic
g ow h in Eu opean Union (EU) na ions. Acco ding o
hei indings, economic eedom and compe i i eness
indices had a + e and signi ican co ela ion wi h
economic g ow h. In con as , he co up ion index
had a - e and conside able co ela ion wi h economic
g ow h. Howe e , he au ho s also no ed ha he
ela ionship be ween hese indices and economic
de elopmen a ied ac oss clus e s o EU coun ies.
This sugges s ha he di e si y o economic, social,
and poli ical condi ions ac oss coun ies may limi
hei p edic i e powe .
In hei esea ch pape i led "Mul ina ional Fi m
G ow h and Sus ainabili y Responses o Dynamics
o Business Regula ions in Hos Ma ke ", Chewaka
and Zhang (2019) aimed o in es iga e how changes
in business egula ions in hos ma ke s a ec he
g ow h and sus ainabili y o mul ina ional i ms. They
conduc ed a sys ema ic li e a u e e iew and analyzed
da a om 29 empi ical s udies. Acco ding o hei
indings, changes in business egula ions had posi i e
and nega i e e ec s on g ow h and sus ainabili y.
The au ho s iden i ied se e al ac o s ha mode a ed
hese e ec s, such as he ype and scope o egula ion,
he size and age o he i m, and he le el o ins i u ional
de elopmen in he hos ma ke .
Chewaka and Zhang (2019) concluded ha mul ina ional
i ms ha e o accep a p oac i e and s a egic app oach
o espond o changes in business egula ions in hos
ma ke s a he han simply complying wi h hem. They
also sugges ed ha policymake s should conside he
po en ial impac s o egula o y changes on mul ina ional
i ms and ake s eps o minimize any nega i e e ec s.
Khan, Mohd Na ed
35
In conclusion, economic g ow h can impac he
en i onmen posi i ely and nega i ely. While g ow h can
p o ide oppo uni ies o en i onmen al imp o emen ,
i is impo an o conside i s po en ially nega i e
en i onmen al consequences and ake s eps o mi iga e
hem. Al hough in his s udy, he esea che 's main
conce n has been assessing he impac o anking on
GDP G ow h, GDP G ow h has been seen sepa a ely
in he las sec ion o he analysis. And based on
he anking li e a u e ollowing concep ual modal
has been designed.
IV. Resea ch Objec i es
To measu e he impac o Global Inno a ion
Ranking, Ease o Doing Business Ranking, and
Business F eedom Ranking on india's Economic
De elopmen .
V. Resea ch Me hodology
The esea ch u ilised he S uc u al Equa ion
Modelling (SEM) echnique, which is a obus analy ical
ins umen , o ho oughly in es iga e he complex
in e ela ionships be ween di e se ac o s ha impac
he economic ajec o y o a na ion. Simul aneous
es ima ion o nume ous in e connec ed equa ions was
made possible by SEM, which acili a ed a mo e
comp ehensi e comp ehension o he in ica e
dynamics a play in he ela ionship be ween business
ankings and economic de elopmen .
The in o ma ion employed in his esea ch, ob ained
om he au ho i a i e Wo ld Bank epo co e ing
he pe iod om 2015 o 2021, es ablishes a s ong
basis o he e alua ion, gua an eeing a ho ough and
cu en in es iga ion o he opic. By inco po a ing
panel da a spanning om 2016 o 2021, namely he
Global Inno a ion Ranking, Ease o Doing Business
Ranking, and Business F eedom Ranking, he empo al
aspec o he esea ch is s eng hened, acili a ing
he de ec ion o e ol ing ends and pa e ns.
In o de o deciphe he complex in e ela ionships
be ween he dependen and independen a iables
and es ablish a heo e ical amewo k, he esea che
has employed a concep ual amewo k. The amewo k
unc ions as a s a egic guide o comp ehending he
in e ela ionships and in luences among he di e en
componen s wi hin he s udy's con ex , he eby
enhancing he s eng h and eliabili y o he esea ch
design. A mul i ace ed app oach has been employed
o in es iga e s a is ical associa ion and causa ion,
which includes he u ilisa ion o eg ession analysis,
s uc u al equa ion modelling, pa h diag ams, and
co ela ion analysis. By employed s uc u al equa ion
modelling and pa h diag ams, he pos ula ed ela ionships
was isually depic ed, p o ided cla i y on he complex
pa hways by which business ankings migh in luence
economic de elopmen .
In b ie , he esea ch employed a me hodological
amewo k ha inco po a ed a ious s a is ical ools,
panel da a analysis, SEM, and concep ual amewo ks
o gua an ee an exhaus i e and nuanced in es iga ion
in o he co ela ion be ween business ankings and
he economic ajec o y o a na ion. The s udy's indings
a e mo e c edible and dependable due o he obus
me hodology employed, which p o ides signi ican
con ibu ions o he body o knowledge ega ding
he de e minan s o economic de elopmen .
VI. Resul s
In he esul sec ion, his can be obse ed ha
he used models ha e been men ioned below. In his
model, he GDP G ow h Ra e has been p edic ed
by ~ Global Inno a ion Ranking + Ease o Doing
Business Ranking + Business F eedom Ranking.
Acco ding o Table 1, he model has been es ima ed
using maximum likelihood es ima ion wi h 7 obse a ions
and 11 ee pa ame e s. The model is a linea eg ession
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 3 (APRIL 2024), 30-41
36
wi h "GDP G ow h Ra e" as he dependen a iable
and "Global Inno a ion Ranking", "Ease o Doing
Business Ranking", and "Business F eedom Ranking"
as independen a iables.
Table 2 p o ides in o ma ion on model es s,
including a baseline model wi h a chi-squa e alue
o 50.0 and 7 deg ees o eedom wi h a p- alue
o less han 0.001. Howe e , i is unclea wha he
baseline model ep esen s o how i ela es o he
es ima ed model in Table 1.
A posi i e be a numbe indica es a s ong associa ion
be ween X and Y. The be a coe icien size e eals
how s ongly he a iables a e ela ed. Table 3 o
pa ame e es ima es clea ly s a es ha Global Inno a ion
Ranking, Ease o Doing Business Ranking, and
Business F eedom Ranking posi i ely a ec India's
economic g ow h (GDP), and all he independen
a iables and he dependen a iable we e ound o
be posi i ely ela ed and shown in Figu e 3.
VII. Reg ession Analysis, Pa h Model
and Es ima ed Diag ams
Table 4 shows ha he GDP g ow h a e and he
independen a iables "EDBR," "GIR," and "BFI"
ha e a somewha posi i e co ela ion o 0.395, which
sugges s ha he h ee independen a iables and he
GDP g ow h a e a e ela ed and his associa ion
also depic ed in Figu e 4. In his case, a co ela ion
alue o 0.395 indica es a mode a e posi i e ela ionship
be ween he h ee independen a iables and he GDP
g ow h a e; his means ha as he alues o "EDBR",
"GIR", and "BFI" inc ease, he alues o he GDP
g ow h a e a e also expec ed o inc ease. Fu he
analysis and in e p e a ion o he model, including
eg ession analysis, is necessa y o unde s and he
ela ionship be ween he a iables comple ely.
The es ima ed alue o 0.314 o he independen
Es ima ion Me hod ML
Numbe O Obse a ions 7
F ee Pa ame e s 11
Con e ged TRUE
Loglikelihood Use Model -82.802
Loglikelihood Un es ic ed Model -82.802
Model 'GDP G ow h Ra e' ~ Global Inno a ion Ranking + Ease o Doing Business Ranking +
Business F eedom Ranking
Table 1. Models in o
Label X² d p
Baseline Model 50 7 < .001
Table 2. Model es s
Dep P ed Es ima e Se 95% Con idence In e als ΒZP
Lowe Uppe
GDP G ow h
Ra e
Global Inno a ion
Ranking 0.314 0.701
Gdp G ow h
Ra e
Ease O Doing
Business Ranking 0.119 0.869
GDP G ow h
Ra e
Business F eedom
Ranking 0.547 1.151
Table 3. Pa ame e es ima es
Khan, Mohd Na ed
37
a iable "GIR" in a eg ession model indica es ha ,
on a e age, o e e y 1 uni inc ease in "GIR", he
dependen a iable GDP is expec ed o inc ease by
0.314 uni s, assuming ha all o he independen
a iables a e held cons an ha can be seen in Table
5. The es ima ed alue o 0.119 o he independen
a iable "EDBR" in a eg ession model indica es ha ,
on a e age, o e e y 1 uni inc ease in "EDBR",
he dependen a iable (GDP) is expec ed o inc ease
by 0.119 uni s, assuming ha all o he independen
a iables a e held cons an . The es ima ed alue o
0.547 o he independen a iable "BFI" in a
eg ession model indica es ha , on a e age, o e e y
1 uni inc ease in "BFI", he dependen a iable (GDP)
is expec ed o inc ease by 0.547 uni s, assuming ha
all o he independen a iables a e held cons an .
VIII. Economic De elopmen o
En i onmen Deg ada ion
– A Di e en Pe spec i e
Economic de elopmen and he en i onmen a e
closely in e linked, each signi ican ly impac ing he
o he . While economic g ow h can p o ide oppo uni ies
o people o de elop hei quali y o li e, i can also
P edic o Es ima e SE p
In e cep -56.126 72.718 -0.772 0.496
GIR 0.314 0.487 0.644 0.566
EDBR 0.119 0.226 0.525 0.636
BFI 0.547 0.789 0.693 0.538
Table 5. Model coe icien s - GDP g ow h a e
Figu e 4. Co ela ion ma ix
GDP G ow h Ra e EDBR GIR BFI
GDP G ow h Ra e Pea son's -
p- alue -
EDBR Pea son's 0.395 -
p- alue 0.380 -
GIR Pea son's 0.451 0.888 -
p- alue 0.310 0.008 -
BFI Pea son's -0.301 -0.953 -0.888 -
p- alue 0.512 < .001 0.008 -
Table 4. Co ela ion ma ix
Figu e 3. Es ima ed amewo k
