The study of business environment on economic growth (Middle East selected countries)

Today, critical factors of economic growth have become one of the important and controversial issues among economists. Despite increase of such important factors as production inputs, innovation, technical changes and application of likely vacant capacities in economy, one of the major challenges in economic growth is a legal and institutional environment in which economic agents both enterprises and investors are operating. The low level economic growth of amoung Middle East during the last decades despite presence of opportunities, capacities and facilities including oil resources, it seems that one of the existing obstacles is business environment for economic agents in this region. For this purpose, this research investigates overall effects of business environment on economic growth in the selected countries of this region. The research is carried out as Panel Data Econometric Model for the period 2004-2010. The Results show improvement in rating of business environment index has led to economic growth in these countries, although this situation among the countries is of varying intensity.