Evaluation of impact of improve of Business environment on the economic growth in developing Countries: Generalized Method of Moments

Business environment is one of the important factors effecting the economic growth and development. This issue depends on some other factors, and affects various contexts. Concerning the importance of the issue, regulatory authorities of countries and international organizations always evaluate its effects and propose operational guidelines to improve it. According to the significance of the business environment index, this paper investigate the effects of business environment on economic growth of 12 chosen countries of MENA Zone, using Generalized Method of Moments, during the period of 2005-2013. The results indicate that business environment variables have positive and significant effects on economic growth, so they increase the economic growth of the countries. The only variable which has negative and significant effect on economic growth is regulations. This show that cumbersome regulations cause a decrease in economic growth.This show that cumbersome regulations cause a decrease in economic growth.