Nexus between Ease of Doing Business, Foreign Direct Investments, and Economic Growth
Author: Syed Marwan Shah

Positive FDI inflows and economic growth is two fundamental macroeconomic objectives for every country. The importance of ease of doing business indicators has sparkled the inflow of FDI in to the countries. It also permits to construct a relationship between business regulatory reforms and levels of economic growth. Ease of doing business not only robustly attracts the foreign investors but also attracts the national investors to do business in the country. The paper discusses the significance of ease of doing business over foreign direct investments and economic growth, and how it plays the role in the betterment of an economy. The paper further discusses the indicators that are responsible for the better economy especially for the third world countries. For stimulating the importance of ease of doing business and its relation among foreign direct investment and economic growth, after deep analysis and accumulation of a data set of 189 countries of the world from the year 2004 till 2020, interesting findings reveal the relation of the ease of doing business with the FDI, and the economic growth. The paper has taken into consideration ten indicators that play a key role in ease of doing business. The relation among them has been insignificant except, the indicators related to getting electricity, credits, protecting minority investors, and the enforcement of contracts. Furthermore, all the indicators are most likely to stimulate FDI net inflows without starting a business, registering property, trading across borders, paying taxes, and resolving insolvency. Supervisor:- Dr. Ahsan ul Haq

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Supervisor: Ahsan ul Haq Satti

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