The Effect Of Regulatory Quality On Business Environment in selected countries

Governments through passing proper laws, clarifying the current structures, equaluzing the apportunities, decreasing economic rents, and also modernising legal system can play significant role in providing essential fortunes for proper function of markets. Therefore, the quality of laws represents the ability of governments in composing and executing efficient policies that may lead to the propagation and development of private sector and expanding the business. the main objective of this paper is to analyze the effect of regulatory quality on the “Starting a Business Index” (cost of starting a business, time of starting a business (number of days), and the number of stages of starting a business) in selected middle income countries. Results from models estimation by the method of fixed effects in selected countries in the period 2004-2015 shows that regulatory quality has a negative and meaningful effect on the indexes of “cost of starting a business” (percent of per capita income), time of starting a business (number of days), and the number of stages of starting a business, as indexes of starting a business.