The Impact of Business Environment on of firmas Employment Growth

1
Hodud Essmui
Hodud Essmui
2
Madline Berma
Madline Berma
3
Faridah Bt. Shahadan
Faridah Bt. Shahadan
4
Shamshubarida Bt. Ramlee
Shamshubarida Bt. Ramlee
5
Mohd Fauzi Bin Mohd
Mohd Fauzi Bin Mohd
1 University Kebangsaan, Malaysia

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A good business environment makes it easier for firms from microenterprises to multinationals to enter and exit markets, which contributes to higher productivity, faster growth and creates jobs. A good business environment will benefit both domestic and foreign investors. Domestic and foreign investors invest where they find profitable opportunities, and try to avoid risks. In this paper, we use firm level survey data of the manufacturing firms in three different commercial strong Libyan cities to determine the influence of the business environment on the growth of the employment of the firms. The Structural Equation Model (SEM) method is used in this paper and the empirical variables are calculated for the purpose of the study. We find that corruption, crime and access to finance are the main obstacles that hamper the employment growth of manufacturing firms in Libya. However, the research does not reveal any significant effect of business regulations and the level of competition faced by the firm on the growth of the firm’s employment.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Hodud Essmui. 2014. \u201cThe Impact of Business Environment on of firmas Employment Growth\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B8): .

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GJMBR Volume 14 Issue B8
Pg. 11- 21
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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December 25, 2014

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English

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A good business environment makes it easier for firms from microenterprises to multinationals to enter and exit markets, which contributes to higher productivity, faster growth and creates jobs. A good business environment will benefit both domestic and foreign investors. Domestic and foreign investors invest where they find profitable opportunities, and try to avoid risks. In this paper, we use firm level survey data of the manufacturing firms in three different commercial strong Libyan cities to determine the influence of the business environment on the growth of the employment of the firms. The Structural Equation Model (SEM) method is used in this paper and the empirical variables are calculated for the purpose of the study. We find that corruption, crime and access to finance are the main obstacles that hamper the employment growth of manufacturing firms in Libya. However, the research does not reveal any significant effect of business regulations and the level of competition faced by the firm on the growth of the firm’s employment.

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The Impact of Business Environment on of firmas Employment Growth

Hodud Essmui
Hodud Essmui University Kebangsaan, Malaysia
Madline Berma
Madline Berma
Faridah Bt. Shahadan
Faridah Bt. Shahadan
Shamshubarida Bt. Ramlee
Shamshubarida Bt. Ramlee
Mohd Fauzi Bin Mohd
Mohd Fauzi Bin Mohd

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