The Effect Doing Business on Investment in the Selected Countries MENA

investment has always been an important factor in economic development in societies has always been the focus of economic policy makers in pursuit of a developed economy. In general, there are many factors affecting the investment process, in which the institutional environment of the doing business is of particular importance and weakness in this section is considered as an important barrier to investment in developing countries. Therefore, improving the doing business is a positive step towards strengthening the private sector participation in the economy. As a result, attention to the improvement of the doing business is a necessary, which can be achieved by expanding investment attractiveness for economic growth. Therefore, the purpose of this study is to investigate the effect of doing business on investment in the selected countries of the Middle East and North Africa (MENA). The study covers the period 2007 to 2016. The results show the positive and significant effect of the overall index of doing business on investment. Also, indicators of starting a business, protecting minority investors, paying taxes and trading across borders have positive and significant impact on investment. Whereas the estimated coefficients indicators of dealing with construction permits, getting electricity, registering property, getting credit, enforcing contracts and resolving insolvency insignificant on investment. According to the result of this study, the control variables of per capita income, financial development and import have positive and significant effect as well as interest rate variable has negative and significant effect on the investment of the selected countries.