Analyzing the Impact of EDB on Employment in Agriculture, Industry and Services Sectors (case study: 31 provinces of Iran)

This study aimed to investigate the impact of improving business environment on employment with considering the importance of employment and its impact on improving the business environment. For this purpose, in estimating the model in the form of a basic model at three levels (agriculture, industry and services) and two scenarios at each level, the method of panel data and seasonal data (2017:3 -2019:2) of 31 provinces has been used. The results of the estimations in each sector show that in the provinces where the employment rate of agriculture or industry or services is higher than other provinces, the effect of EBD on employment rate is positive. Of course, the sensitivity of the employment of the agricultural sector to the EDB that has a low elasticity and is equal to 0.34. Another finding is that, unlike in developed and developing provinces, where the EDB has no effect on the employment rate of the agricultural sector; In less development provinces, this effect is positive and equal to 0.1. Also, the positive effect of EDB on industrial employment rate has been observed only for developed provinces with a coefficient of 0.87. However, in this group of provinces, improving the business environment has an inverse effect equal to -0.03 on the employment rate of services and does not have a significant effect in developing and less development provinces.