Skip to main content
Have a personal or library account? Click to login
How Business Environment Constraints Shape Firm Performance: Evidence From Global Micro-Level Data Cover

How Business Environment Constraints Shape Firm Performance: Evidence From Global Micro-Level Data

Open Access
|May 2026

References

  1. Abdisa, L. T. and Hawitibo, A. L. 2021. Firm Performance Under Financial Constraints: Evidence from Sub-Saharan African Countries. Journal of Innovation and Entrepreneurship, 10 (1), 38. DOI: 10.1186/s13731-021-00177-1.
  2. Aisen, A. and Veiga, F. J. 2013. How Does Political Instability Affect Economic Growth? European Journal of Political Economy, 29 (C), 151–167. DOI: 10.1016/j.ejpoleco.2012.11.001.
  3. Allison, L., Liu, Y., Murtinu, S. and Wei, Z. 2023. Gender and Firm Performance Around the World: The Roles of Finance, Technology and Labor. Journal of Business Research, 154, 113322. DOI: 10.1016/j.jbusres.2022.113322.
  4. Aly, H. and Ahmed, F. 2025. Effects of Electricity Outages on Enterprise Productivity in Egypt: Lessons Learned. PLoS One, 20 (9), e0329479. DOI: 10.1371/journal.pone.0329479.
  5. Apeti, A. E. and Ly, A. 2024. Power Constraints and Firm-Level Total Factor Productivity in Developing Countries. Energy, 309, 132871. DOI: 10.1016/j.energy.2024.132871.
  6. Arayssi, M., Fakih, A. and Kassem, M. 2019. Government and Financial Institutional Determinants of Development in MENA Countries. Emerging Markets Finance and Trade, 55 (11), 2473–2496. DOI: 10.1080/1540496X.2018.1507907.
  7. Aterido, R., Hallward-Driemeier, M. and Pagés, C. 2011. Big Constraints to Small Firms’ Growth? Business Environment and Employment Growth Across Firms. Economic Development and Cultural Change, 59 (3), 609–647. DOI: 10.1086/658349.
  8. Audretsch, D. B., Belitski, M., Chowdhury, F. and Desai, S. 2024. Regulating Entrepreneurship Quality and Quantity. Research Policy, 53 (2), 104942. DOI: 10.1016/j.respol.2023.104942.
  9. Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. 2014. Who Creates Jobs in Developing Countries? Small Business Economics, 43 (1), 75–99. DOI: 10.1007/s11187-014-9549-5.
  10. Banerjee, P. and Dutta, S. 2022. The Effect of Political Risk on Investment Decisions. Economics Letters, 212, 110301. DOI: 10.1016/j.econlet.2022.110301.
  11. Barney, J. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17 (1), 99–120. DOI: 10.1177/014920639101700108.
  12. Barro, R. J. and Lee, J. W. 2013. A New Data Set of Educational Attainment in the World, 1950–2010. Journal of Development Economics, 104, 184–198. DOI: 10.1016/j.jdeveco.2012.10.001.
  13. Beck, T., Demirgüç-Kunt, A. and Maksimovic, V. 2005. Financial and Legal Constraints to Growth: Does Firm Size Matter? The Journal of Finance, 60 (1), 137–177. DOI: 10.1111/j.1540-6261.2005.00727.x.
  14. Beck, T. and Demirgüç-Kunt, A. 2006. Small and Medium-Size Enterprises: Access to Finance as a Growth Constraint. Journal of Banking & Finance, 30 (11), 2931–2943. DOI: 10.1016/j.jbankfin.2006.05.009.
  15. Beck, T., Demirgüç-Kunt, A., Laeven, L. and Levine, R. 2008. Finance, Firm Size, and Growth. Journal of Money, Credit and Banking, 40 (7), 1379–1405. DOI: 10.1111/j.1538-4616.2008.00164.x.
  16. Besley, T. and Persson, T. 2014. Why Do Developing Countries Tax So Little? Journal of Economic Perspectives, 28 (4), 99–120. DOI: 10.1257/jep.28.4.99.
  17. Bilan, I. and Apostoaie, C. M. 2025. Tax Policy, Corruption, and Formal Business Entry: Cross-Country Evidence from Emerging Economies. Economic Change and Restructuring, 58, 26. DOI: 10.1007/s10644-025-09865-4.
  18. Boyd, J.H., Levine, R. and Smith, B.D. 2001. The Impact of Inflation on Financial Sector Performance. Journal of Monetary Economics, 47 (2), 221–248. DOI: 10.1016/S0304-3932(01)00049-6.
  19. Bui, A. T., Pham, T. P., Pham, L. C. and Van Ta, T. K. 2021. Legal and Financial Constraints and Firm Growth: Small and Medium Enterprises (SMEs) Versus Large Enterprises. Heliyon, 7 (12), e08576. DOI: 10.1016/j.heliyon.2021.e08576.
  20. Calderón, C. and Servén, L. 2010. Infrastructure and Economic Development in Sub-Saharan Africa. Journal of African Economies, 19 (S1), i13–i87. DOI: 10.1093/jae/ejp022.
  21. Campos, N. F., Dimova, R. and Saleh, A. 2010. Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth. IZA Discussion Paper No. 5334.
  22. Cicea, C., Marinescu, C., Tsoulfidis, L. and Tsaliki, P. 2024. Firm Performance in Business Environment: Revealing Determinants from a Scientific Production Perspective. Economic Computation and Economic Cybernetics Studies and Research, 58 (3), 72–89. DOI: 10.24818/18423264/58.3.24.05.
  23. Collier, P. and Hoeffler, A. 2004. Greed and Grievance in Civil War. Oxford Economic Papers, 56 (4), 563–595. DOI: 10.1093/oep/gpf064.
  24. Cull, R., Demirgüç-Kunt, A. and Lyman, T. 2012. Financial Inclusion and Stability: What Does Research Show? CGAP Brief, May 2012.
  25. Djankov, S., La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. 2002. The Regulation of Entry. The Quarterly Journal of Economics, 117 (1), 1–37. DOI: 10.1162/003355302753399436.
  26. Djankov, S., Ganser, T., McLiesh, C., Ramalho, R. and Shleifer, A. 2010. The Effect of Corporate Taxes on Investment and Entrepreneurship. American Economic Journal: Macroeconomics, 2 (3), 31–64. DOI: 10.1257/mac.2.3.31.
  27. Dollar, D., Hallward-Driemeier, M. and Mengistae, T. 2005. Investment Climate and Firm Performance in Developing Economies. Economic Development and Cultural Change, 54 (1), 1–31. DOI: 10.1086/431262.
  28. Dollar, D., Hallward-Driemeier, M. and Mengistae, T. 2006. Investment Climate and International Integration. World Development, 34 (9), 1498–1516. DOI: 10.1016/j.worlddev.2006.05.001.
  29. Dreher, A. and Schneider, F. 2010. Corruption and the Shadow Economy: An Empirical Analysis. Public Choice, 144, 215–238. DOI: 10.1007/s11127-009-9513-0.
  30. Duong, K.D., Dang, H.G., Tran, T.N.D. and Pham, H. 2024. How Do Financial Constraints and Market Competition Affect Innovations: Evidence from Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 10 (3), 100321. DOI: 10.1016/j.joitmc.2024.100321.
  31. Elgin, C., Kose, M.A., Ohnsorge, F. and Yu, S. 2021. Understanding Informality. CERP Discussion Paper 16497, Centre for Economic Policy Research, London. DOI: 10.2139/ssrn.3914265.
  32. Escribano, A. and Guasch, J. L. 2005. Assessing the Impact of the Business Climate on Productivity Using Firm Level Data: Methodology and the Cases of Guatemala, Honduras, and Nicaragua. World Bank Policy Research Working Paper No. 3621. DOI: 10.1596/1813-9450-3621.
  33. Escribano, A., Guasch, J. L. and Pena, J. 2010. Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa: Cross-Country Comparison Based on Investment Climate Surveys from 1999 to 2005. World Bank Policy Research Working Paper No. 5191. DOI: 10.1596/1813-9450-5191.
  34. Evans, P. B. 1995. Embedded Autonomy: States and Industrial Transformation. Princeton: Princeton University Press.
  35. Fearon, J. D. and Laitin, D. D. 2003. Ethnicity, Insurgency, and Civil War. American Political Science Review, 97 (1), 75–90. DOI: 10.1017/S0003055403000534.
  36. Fisman, R. and Svensson, J. 2007. Are Corruption and Taxation Really Harmful to Growth? Firm Level Evidence. Journal of Development Economics, 83 (1), 63–75. DOI: 10.1016/j.jdeveco.2005.09.009.
  37. Fonseca, T., de Faria, P. and Lima, F. 2019. Human Capital and Innovation: the Importance of the Optimal Organizational Task Structure. Research Policy, 48 (3), 616–627. DOI: 10.1016/j.respol.2018.10.010.
  38. Francis, D.C., Karalashvili, N., Maemir, H. and Rodriguez Meza, J. 2020. Measuring Total Factor Productivity Using the Enterprise Surveys: A Methodological Note. Policy Research Working Paper No. 9491. The World Bank. DOI: 10.1596/34913.
  39. Galsanjigmed, E. and Sekiguchi, T. 2023. Challenges Women Experience in Leadership Careers: An Integrative Review. Merits, 3 (2), 366–389. DOI: 10.3390/merits3020021.
  40. Gwartney, J., Lawson, R., Hall, J., Murphy, R., Callais, J.T., Fike, R., Geloso, V., Khalid, N. S., McMahon, F. and van Staden, M. 2021. Economic Freedom of the World: 2021 Annual Report. Institute of Economic Affairs Monographs. DOI: 10.2139/ssrn.3924422.
  41. Hallegatte, S., Rentschler, J. and Rozenberg, J. 2019. Lifelines: The Resilient Infrastructure Opportunity. World Bank Publications. DOI: 10.1596/978-1-4648-1430-3.
  42. Hallward-Driemeier, M. and Pritchett, L. 2015. How Business is Done in the Developing World: Deals Versus Rules. Journal of Economic Perspectives, 29 (3), 121–140. DOI: 10.1257/jep.29.3.121.
  43. Hanushek, E. A. and Woessmann, L. 2012. Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation. Journal of Economic Growth, 17, 267–321. DOI: 10.1007/s10887-012-9081-x.
  44. Heckelman, J. C. 2000. Economic Freedom and Economic Growth: A Short-Run Causal Investigation. Journal of Applied Economics, 3 (1), 71–91. DOI: 10.1080/15140326.2000.12040546.
  45. Jiang, S., He, H., Liu, X. and Huo, B. 2024. Public Utility Obstacles and Labor Productivity Growth: The Moderating Effect of National Culture. Journal of Operations Management, 70 (6), 904–932. DOI: 10.1002/joom.1329.
  46. Kaufmann, D., Kraay, A. and Mastruzzi, M. 2011. The Worldwide Governance Indicators: Methodology and Analytical Issues. Hague Journal on the Rule of Law, 3 (2), 220–246. DOI: 10.1017/S1876404511200046.
  47. Kellenberg, D. K., and Mobarak, A. M. 2008. Does Rising Income Increase or Decrease Damage Risk from Natural Disasters? Journal of Urban Economics, 63 (3), 788–802. DOI: 10.1016/j.jue.2007.05.003.
  48. Klapper, L., Laeven, L. and Rajan, R. 2006. Entry Regulation As a Barrier to Entrepreneurship. Journal of Financial Economics, 82 (3), 591–629. DOI: 10.1016/j.jfineco.2005.09.006.
  49. La Porta, R. and Shleifer, A. 2014. Informality and Development. Journal of Economic Perspectives, 28 (3), 109–126. DOI: 10.1257/jep.28.3.109.
  50. Levine, R. 2005. Finance and Growth: Theory and Evidence. In Aghion, P. and Durlauf, S. (eds.). Handbook of Economic Growth, Vol. 1, pp. 865–934. DOI: 10.1016/S1574-0684(05)01012-9.
  51. Mauro, P. 1995. Corruption and Growth. The Quarterly Journal of Economics, 110 (3), 681–712. DOI: 10.2307/2946696.
  52. McKenzie, D. and Woodruff, C. 2008. Experimental Evidence on Returns to Capital and Access to Finance in Mexico. The World Bank Economic Review, 22 (3), 457–482. DOI: 10.1093/wber/lhn017.
  53. Mishkin, F. S. 2009. Globalization and Financial Development. Journal of Development Economics, 89 (2), 164–169. DOI: 10.1016/j.jdeveco.2007.11.004.
  54. North, D. C. 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press. DOI: 10.1017/cbo9780511808678.
  55. Odei, S. A. 2024. The Relationship between Perceived Institutional Conditions and Firm-Level Innovations in Emerging Markets: Moderating Effects of Firm Ownerships. PLoS One, 19 (1), e0291290. DOI: 10.1371/journal.pone.0291290.
  56. Orjiakor, E. C. 2022. Business Climate and Firm Exit in Developing Countries: Evidence from Nigeria. Future Business Journal, 8 (1), 51. DOI: 10.1186/s43093-022-00160-6.
  57. Rajan, R. G. and Zingales, L. 1998. Financial Dependence and Growth. The American Economic Review, 88 (3), 559–586.
  58. Roy, C. K. 2025. Dynamics between the Obstacles of Business Environment and Firm Performance in Bangladesh: Survey-Based Empirical Insights Using ML Algorithms. Heliyon, 11 (2), e42092. DOI: 10.1016/j.heliyon.2025.e42092.
  59. Stock, J. H. and Yogo, M. 2005. Testing for Weak Instruments in Linear IV Regression. In Andrews, D. W. K. and Stock, J. H. (eds.). Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg, pp. 80–108. Cambridge University Press. DOI: 10.1017/CBO9780511614491.006.
  60. Suárez Serrato, J. C. and Zidar, O. 2016. Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms. American Economic Review, 106 (9), 2582–2624. DOI: 10.1257/aer.20141702.
  61. Valdiglesias, J. and Quintana, D. 2026. Regulatory Efficiency and Economic Growth: Evidence from East Asia and Latin America. Frontiers in Political Science, 8, 1736332. DOI: 10.3389/fpos.2026.1736332.
  62. Xiao, Z., Gao, J., Wang, Z., Yin, Z. and Xiang, L. 2022. Power Shortage and Firm Productivity: Evidence from the World Bank Enterprise Survey. Energy, 247, 123479. DOI: 10.1016/j.energy.2022.123479.
  63. Zahra, S. A., Handoyo, S. and Amrania, G. K. P. 2025. Sustainable Business Practices and Firm Performance: A Systematic Literature Review. Cogent Business & Management, 12 (1), 2597715. DOI: 10.1080/23311975.2025.2597715.
DOI: https://doi.org/10.2478/revecp-2025-0008 | Journal eISSN: 1804-1663 | Journal ISSN: 1213-2446
Language: English
Page range: 123 - 146
Published on: May 13, 2026
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2026 Eleftherıos Gıovanıs, Öznur Özdamar, published by Mendel University in Brno
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.