Study On The Impact Of Government Regulation On Business Environment

Regulation,also known as regulation and supervision,is an indispensable institutional arrangement in modern market economy and a concentrated embodiment of the relationship between government and market.Relaxing economic regulation and strengthening social regulation are two major development trends of government regulation.We will relax market access,simplify approval procedures,make prices more market-based,and remove policies and regulations that impede fair competition.All these measures aim to energize market players and foster an orderly and regulated market environment.Strengthening occupational safety regulations,product quality regulations and environmental regulations will optimize the construction of business environment from the perspective of enterprise factor acquisition,cost burden and location choice.Through regulatory innovation,economic regulation and social regulation can exert influence on business environment.Regulatory innovation uses big data and the Internet to realize information sharing and big data supervision and coordinated supervision;To strengthen supervision and deterrence and reduce the burden on enterprises,we will adopt the "double random and one open" policy.Perfect the construction of credit system,strengthen credit supervision,establish an honest trading environment.In recent years,China's international ranking of business environment has risen from83 in 2003 to 31 in 2020,showing significant improvement.China has a vast territory,different resource endowment,there are differences between regions.The business environment of the eastern coastal region is relatively high,while that of the inland region is relatively low.This has an important relationship with local government intervention in the market.The scope,intensity and mode of government regulation,the influence on the relationship between government and market,the development of private economy,the development degree of market and the construction of legal system are all indirectly reflected in the business environment of a region.In general,enterprises have to passively accept the local business environment.A good environment plays a positive role in promoting the establishment,operation,competition and development of enterprises,as well as promoting regional industrial upgrading and economic development.In recent years,the central and local governments have realized the importance of scientifically understanding the relationship between government and market,reducing excessive economic regulations,establishing fair competition market and improving the level of government services.Social regulation affects enterprise's factor acquisition,cost burden and location choice through factor flow,production cost and natural environment.This paper focuses on the impact of government regulation on the business environment.It mainly includes the following contents: First,literature review is conducted on the connotation of government regulation and business environment,and according to the nature of government regulation,the research status of government regulation on business environment is classified from price regulation,entry regulation,financial regulation,occupational safety regulation,product quality regulation and environmental regulation.Secondly,it analyzes the theoretical mechanism of the influence of government regulation on the business environment.Regulation can act on the business environment through institutional regulation,regulation time delay,financial efficiency,regulation fluctuation and regulation competition.Thirdly,the author sorts out the practice of government regulation since the reform and opening up,including four stages:incubation stage(1979-1992)--initial stage(1993-2001)--comprehensive construction(2002-2013)--reform and innovation(2013-present).The development process of business environment construction includes three stages: the embryonic stage(1979-2012),preliminary implementation(2013-2016)and comprehensive promotion(2017-present).This paper analyzes the influence of government regulation practice on the construction of business environment and the existing problems.Next,panel data of 30 provinces from2008 to 2018 were selected to construct a provincial business environment evaluation indicator system.Empirical analysis is made on the relationship between price regulation,entry regulation,financial regulation,occupational safety regulation,product quality regulation,environmental regulation and business environment.Then,the case study of regulation practice and business environment construction in China is carried out.In order to keep the terms consistent with policy documents,government regulation was used instead of government regulation.The influence of economic and social regulations on the business environment is explored through regulatory innovation,and the influence process is refined into BCRS model.Finally,from the perspective of improving economic regulation,social regulation and regulatory innovation,countermeasures and suggestions are put forward to optimize the business environment.Based on the above research,this paper draws the following conclusions: The construction of China's business environment is path-dependent and always maintains the trend of optimized development.Excessive economic regulation has a negative impact on the business environment,while social regulation has a positive impact on the business environment.To be specific,first,we should actively develop the private economy,relax market access and treat all types of market players on an equal footing,which is conducive to creating a level playing field.Clarifying property rights forms a constraint on enterprises,and enterprises actively undertake environmental responsibility through environmental protection investment,which is conducive to shaping the external "hard environment" of green environmental protection.Rent-seeking has maintained the monopolistic position of enterprises,which lack the motivation for production and innovation,making it difficult to form a level playing field.Second,the price regulation itself will inhibit the innovation motivation of enterprises,but through the delay effect of price regulation,enterprises will gain more profits and stimulate enterprises to carry out technological innovation.The relaxation of entry regulations is conducive to improving the level of entrepreneurship in the current period,but the extension of the entry regulations delay increases the time for enterprises to deal with the government,so that enterprises miss the best opportunity to enter.Third,excessive financial regulations distort financial efficiency,form financing constraints on private enterprises and small and medium-sized enterprises,financialize real enterprises,create economic bubbles,and produce excess capacity,which is not conducive to equal development of market players and worsen the business environment.Fourth,regulatory fluctuations have a negative impact on production expectations,which increases enterprise business risks and hedging motives.Enterprises will delay or give up promising innovation behaviors.Enterprises lack incentives to improve productivity and technological innovation,making it difficult to foster a stable and predictable business environment.Fifth,China's business environment has a spatial aggregation and distribution of "high" and "low",with imitation effect.Under the system of fiscal decentralization,inter-governmental environmental regulation exists the strategy of "competition to the top",that is,the competition state of "you are strong and I am strong".Strengthening environmental regulations not only improves the local business environment,but also promotes the business environment in the surrounding provinces.First,environmental regulation has a more profound impact on the business environment.Second,environmental regulations mostly affect the business environment through space spillover.Sixth,regulatory innovation is a combination of big data regulation,credit regulation,"double random,one open" regulation,and collaborative regulation.Through regulatory innovation,economic regulation and social regulation can exert influence on business environment.The status of big data regulation is the highest,and it plays a role in combination with the other three regulatory modes.The innovation of this paper is reflected in the following aspects: First,it expounds the influence mechanism of government regulation on the business environment,and explains the action path between the two.Analyzes the formal institution,informal institution affect the regulation of market main body activity,the price regulation delay and enter the delay influence on enterprise innovation and entrepreneurship,excessive financial regulation suppressing the influence of the financial efficiency of enterprise financing,production expected volatility of uncertainty of rules and regulations,regulatory competition between local governments in doing business.Second,a provincial business environment evaluation index system suited to China's national conditions has been established.It contains four first-level indicators,including market environment,government affairs environment,legal system and innovation environment,10 secondlevel indicators and 20 third-level indicators.The score of provincial business environment was obtained by text analysis method combined with the weight of "Regulations on Optimizing business Environment".Thirdly,using a variety of econometric models,the paper empirically examines five theoretical mechanisms of the impact of government regulation on the business environment,and finds that there is a significant trend of optimizing the development of the business environment.Excessive economic regulation has a negative impact on the business environment,while social regulation has a positive impact on the business environment.Fourthly,multi-case analysis is adopted to reveal regulatory innovation as a set of "combination",including big data regulation,credit regulation,"double random,one open" regulation and collaborative regulation.The influence of economic and social regulations on the business environment is explored through regulatory innovation,and the influence process is refined into BCRS model.