Investigating the factors influencing ease of doing business in Gilan province

Abstract

Purpose

The ease of doing business (EODB) is a key factor in the development of investment, production and employment in a country. The purpose of this research is to identify the components of EODB in Gilan province in Northern Iran and rank these components from the perspective of economic operators.

Design/methodology/approach

This research uses a mixed methods design. In the qualitative phase, the components of EODB in Gilan province are identified through meta-synthesis with the participation of 10 experts. In the quantitative phase, structural equation modeling is used to rank these components from the perspective of 75 randomly selected economic operators from different economic sectors of Gilan province.

Findings

According to the participants, the main factors influencing EODB in Gilan province are: (1) public services and infrastructure; (2) political stability and the government; (3) policies, laws and regulations and (4) security of property rights.

Practical implications

Identifying factors conducive to the business environment can play an effective role in removing the barriers to achieving the goals of development programs, such as economic growth and reducing unemployment, poverty and inflation. Gilan province, in particular, is in a favorable condition in terms of climate and geography, with an abundance of young, specialized human resources, which can help remove barriers to improving the business environment and facilitate the use of these capacities. It must be noted that the labor force participation rate in Gilan province is 41.3%, indicating that 58.7% of the working age population is not working or actively looking for work, and removing EODB barriers can provide these people with incentives for economic participation.

Originality/value

The results suggest that creating a stable, transparent, anti-rent, predictable and reliable business environment will allow for increasing investment, production and employment across the province, and that controlling the inflation caused by increased production will make it possible to achieve maximum productivity and economic development.