Business Environment, Fintech and EconomicDevelopment in Selected Countries

The present study attempts to examine the relationship betweenbusiness environment, fintech and economic development inselected countries by using the dynamic generalized method ofmoment’s model during the period of ۲۰۰۰ to ۲۰۲۲. It was foundthat for one unit of increase in the improvement of businessenvironment, fintech, labor, capital and education , theeconomic development of selected OECD countries showed theincrease of ۳۲, ۵۴, ۴۰, ۵۴ and ۳۲ units and for selected OPECcountries , the increase of ۱۲, ۱۵, ۲۰, ۲۳ and ۱۵ units wereobserved, respectively. The business environment improvementis considered as one of the main challenges and priorities in theeconomy of countries and can be assumed an important elementin attaining the growth and economic development goals. It isworth to mention that the business environment is a criticalfactor for the economic and institutional situation of a countryand determines the investment horizon in the countries. Thebusiness environment progress plays a significant role inexpanding the activities of the private sector and potentialentrepreneurs to pave the ground for increasing growth. On theother hand, according to the estimation results of the fintechmodel, its effect on economic development has been positive andsignificant. Increasing the fintech index leads to financing moreproduction and service economic projects. An increase in thefintech index can result into the growth of the production ofgoods as well as presenting much services, and as a result, theimprovement of the business environment and more rawmaterials, which can have a positive impact on the economicprogress index; therefore, focusing on the economicdevelopment stability in each country should be one of theimportant issues that receives much attention by governmentalauthorities and officials.

Keywords:

business environment improvement , fintech , economic development , dynamic generalized method ofmoment’s model