Loading menu…

The Impact of Business Environment on of Firm’s Employment Growth

The Impact of Business Environment on of Firm’s Employment Growth

Article Fingerprint

ReserarchID

Q9RJI

The Impact of Business Environment on of Firm’s Employment Growth Banner

Key Research Insights

Synthesized scholarly intelligence & interactive research assistant
Access Review Comments
  • English
  • Afrikaans
  • Albanian
  • Amharic
  • Arabic
  • Armenian
  • Azerbaijani
  • Basque
  • Belarusian
  • Bengali
  • Bosnian
  • Bulgarian
  • Catalan
  • Cebuano
  • Chichewa
  • Chinese (Simplified)
  • Chinese (Traditional)
  • Corsican
  • Croatian
  • Czech
  • Danish
  • Dutch
  • Esperanto
  • Estonian
  • Filipino
  • Finnish
  • French
  • Frisian
  • Galician
  • Georgian
  • German
  • Greek
  • Gujarati
  • Haitian Creole
  • Hausa
  • Hawaiian
  • Hebrew
  • Hindi
  • Hmong
  • Hungarian
  • Icelandic
  • Igbo
  • Indonesian
  • Irish
  • Italian
  • Japanese
  • Javanese
  • Kannada
  • Kazakh
  • Khmer
  • Korean
  • Kurdish (Kurmanji)
  • Kyrgyz
  • Lao
  • Latin
  • Latvian
  • Lithuanian
  • Luxembourgish
  • Macedonian
  • Malagasy
  • Malay
  • Malayalam
  • Maltese
  • Maori
  • Marathi
  • Mongolian
  • Myanmar (Burmese)
  • Nepali
  • Norwegian
  • Pashto
  • Persian
  • Polish
  • Portuguese
  • Punjabi
  • Romanian
  • Russian
  • Samoan
  • Scots Gaelic
  • Serbian
  • Sesotho
  • Shona
  • Sindhi
  • Sinhala
  • Slovak
  • Slovenian
  • Somali
  • Spanish
  • Sundanese
  • Swahili
  • Swedish
  • Tajik
  • Tamil
  • Telugu
  • Thai
  • Turkish
  • Ukrainian
  • Urdu
  • Uzbek
  • Vietnamese
  • Welsh
  • Xhosa
  • Yiddish
  • Yoruba
  • Zulu
Reading Preferences
Font Size
Line Spacing
Background
This converted HTML version may contain rendering inconsistencies. Please refer to the PDF for the authoritative version, or click here to provide feedback.

Abstract

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. These results have important policy implications for the priority of reform efforts. To improve the Libyan business environment, the government of Libya should enforce the Anti-Corruption Law and should make the financial system more dynamic, by establishing a clear regulatory system and by continuing to open up the banking sector to private investment. They should also provide access to high quality financial services and to capital. The government also must work hard and take urgent steps to improve security.

References

42 Cites in Article
  1. 1. N. Aggrey,M. Ogwal,M. Ochai,I. Mukasa (2012). Aggrey, N., Ogwal, M.,Ochai, M. & Mukasa, I.
  2. 2. James Anderson,David Gerbing (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.
    CrossRef DOI
  3. 3. R. Aterido,M. Hallward-Driemeier,C. Pages (2009). Big constraints to small firms’ growth? Business environment and employment growth across firms. World Bank Policy Research Working Paper
  4. 4. R. Aterido,M. Hallward-Driemeier (2010). The impact of the investment climate on employment growth: Does Sub-Saharan Africa mirror other lowincome regions. World Bank Policy Research Working Paper
  5. 5. D. Athanasouli,A. Goujard,P. Sklias (2012). Corruption and firm performance: Evidence from Greek firms. International Journal of Economic Sciences and Applied Research, 5(2), 43-67.
    CrossRef DOI
  6. 6. M. Ayyagari,A. Demirguc –Kunt,V. Maksimovic (2006). How important are financing constraints? The role of finance in the business environment.
  7. 7. Jay Barney (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
    CrossRef DOI
  8. 8. G. Batra,D. Kaufmann,A. Stone (2003). Investment Climate around the World: Voices of the Firms from the World Business Environment Survey. Investment Climate around the World: Voices of the Firms from the World Business Environment Survey
  9. 9. (2005). Financial and legal constraints to growth: Does firm size matter?. Journal of Finance, LX(1), 137-177.
  10. 10. P. Bentler (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588-606.
    CrossRef DOI
  11. 11. T. Brown (2006). Confirmatory factor analysis for applied research.
  12. 12. K. Bollen (1990). Overall fit in covariance structure models: Two types of sample size effects. Psychological Bulletin, 107(2), 256-59.
  13. 13. David Dollar,Mary Hallward‐driemeier,Taye Mengistae (2005). Investment Climate and Firm Performance in Developing Economies. Economic Development and Cultural Change, 54(1), 1-31.
    CrossRef DOI
  14. 14. Ana Fernandes (2008). Firm Productivity in Bangladesh Manufacturing Industries. World Development, 36(10), 1725-1744.
    CrossRef DOI
  15. 15. Raymond Fisman,Jakob Svensson (2007). Are corruption and taxation really harmful to growth? Firm level evidence. Journal of Development Economics, 83(1), 63-75.
    CrossRef DOI
  16. 16. Claes Fornell,David Larcker (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
    CrossRef DOI
  17. 17. Alejandro Gaviria (2002). Assessing the effects of corruption and crime on firm performance: evidence from Latin America. Emerging Markets Review, 3(3), 245-268.
    CrossRef DOI
  18. 18. David Gerbing,James Anderson (1992). Monte Carlo Evaluations of Goodness of Fit Indices for Structural Equation Models. Sociological Methods & Research, 21(2), 132-160.
    CrossRef DOI
  19. 19. Micheline Goedhuys,Norbert Janz,Pierre Mohnen (2010). What drives productivity in Tanzanian manufacturing firms: technology or business environment?. The European Journal of Development Research, 20(2), 199-218.
    CrossRef DOI
  20. 20. J. Hair,W. Black,B. Babin,R. Anderson (2010). Multivariate data analysis.
  21. 21. Mary Hallward‐driemeier,Scott Wallsten,Lixin Xu (2006). Ownership, investment climate and firm performance: Evidence from Chinese firms. Economics of Transition, 14(4), 629-647.
    CrossRef DOI
  22. 22. R. Hoyle (1995). Hoyle, R. H. 1995. The structural equation modeling approach.In R. H. Hoyle (ed). Structural equation modeling: Concepts, issues and applications, 1-15.
  23. 23. L. James,S. Mulaik,J. Brett (1982). Causal analysis: Models, assumptions and data.
  24. 24. K. Jöreskog,D. Sörbom (1993). LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language.
  25. 25. (2009). Productivity and investment climate in developing countries: How do MENA industries perform?. Economic Research Forum
  26. 26. L. Klapper,L. leaven (2006). Entry regulation as a barrier to entrepreneurship. Journal of Financial Economics, 82(3), 591-629.
    CrossRef DOI
  27. 27. R. Kline (2011). Principles and practice of Structural Equation Modeling.
  28. 28. A. Kochanovay (2012). The Impact of Bribery on Firm Performance: Evidence from Central and Eastern European Countries. The Impact of Bribery on Firm Performance: Evidence from Central and Eastern European Countries. Working Paper Series ISSN, 1211-3298.
  29. 29. H. Marsh (1996). Assessing goodness of fit: Is parsimony always desirable?. Journal of Experimental Education, 64, 364-390.
  30. 30. Mulaik S (1995). Objectivity in Science and Structural Equation Modeling. issue and applications, 118-137.
  31. 31. R. Mueller,G. Hancock (2008). Best practices in structural equation modeling. Best practices in quantitative methods
  32. 32. B. Nishantha (2011). The relationship between human capital, social capital and firm growth of small enterprises in Sri Lanka. International Research Conference on Management and Finance, 2
  33. 33. Thuy Nguyen,Mathijs Van Dijk (2012). Corruption, growth, and governance: Private vs. state-owned firms in Vietnam. Journal of Banking & Finance, 36(11), 2935-2948.
    CrossRef DOI
  34. 34. Mohammad Rahaman (2011). Access to financing and firm growth. Journal of Banking & Finance, 35(3), 709-723.
    CrossRef DOI
  35. 35. J. Rand,F. Tarp (2010). Firm-level corruption in Vietnam.
  36. 36. Murat Şeker,Judy Yang (2012). How Bribery Distorts Firm Growth: Differences by Firm Attributes. World Bank Policy Research Working Paper
    CrossRef DOI
  37. 37. R. Schumacker,R. Lomax (2010). A beginners guide to structural equation modeling.
  38. 38. James Steiger (1990). Structural model evaluation and modification: An interval estimation approach. Multivariate Behavioral Research, 25(2), 173-180.
    CrossRef DOI
  39. 39. Ledyard Tucker,Charles Lewis (1973). A Reliability Coefficient for Maximum Likelihood Factor Analysis. Psychometrika, 38(1), 1-10.
    CrossRef DOI
  40. 40. Virginie Vial,Julien Hanoteau (2010). Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian Evidence. World Development, 38(5), 693-705.
    CrossRef DOI
  41. 41. Yuanyuan Wang,Jing You (2012). Corruption and firm growth: Evidence from China. China Economic Review, 23(2), 415-433.
    CrossRef DOI
  42. 42. World Bank (2005). Doing Business in 2005: Removing obstacles to growth.
Show All References
Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Hodud Essmui, Madline Berma, Faridah Bt. Shahadan, Shamshubarida Bt. Ramlee, Mohd Fauzi Bin Mohd. 2014. "The Impact of Business Environment on of Firm’s Employment Growth". Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue 40 (B8)).

More Citation Formats

Download Citation

  • Open Access
  • Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 (CC BY-NC-ND 4.0)
Download Article
Access OJS
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
business environmentemployment growthmanufacturing firmsStructural Equation Model (SEM)
Classification
GJMBR-B Classification JEL Code: M12
M10
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 3, 2014
  • Published November 7, 2014
Version of record
v1.2

Issue date
November 7, 2014

Language
English
Order Article Reprint
Experience in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR
Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D
Article Matrices
Total Views: 1.7K
Total Downloads: 84
All Trends

Request Access

Please fill out the form below to request access to this research paper. Your request will be reviewed by the editorial or author team.
X

This is the heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

High-quality academic research articles on global topics and journals.

The Impact of Business Environment on of Firm’s Employment Growth

Hodud Essmui
Hodud Essmui
  • Submission ReceivedDecember 14, 2013
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 3, 2014
  • Published November 7, 2014