Competitiveness and Business environment

Competitiveness level in world countries is one of significant factors, which considers many of macro and microeconomic variables. This index plays a vital role in survival of every country and it is considered as a tool for achieving favorable economic growth and sustainable development in any country.Hence, it is essential to study factors creating the proper field for competition between economic agents in order to make companies' activity more competitive in the industry and markets. Therefore, this study was conducted to examine effect of competitiveness on the business environment in selected Islamic countries. In this research, effect of basic requirement indicators, efficiency rise, innovation, government's consumption expenditure, liquidity and exchange rate changes were examined on business environment of 16 Islamic countries during 2000-2017. Panel data method with fixed effects was used to estimate the model. Statistical information associated with collected data were analyzed using Eviews10 Software. Research results showed that basic requirement indicators, efficiency and innovation rise had positive and significant effect on the business environment. recommended to government to provide essential infrastructures and improve the macroeconomic environment and other relevant indicators in order to have a competitive market.