Research On The Effect Of Business Environment On Economic Development Based On Urban Perspective

From the perspective of economic development practice,economic development is closely related to the local business environment.However,in theory,the research on the effect of business environment on economic development is not comprehensive enough.In practice,the overall level of the business environment in China is low and the localities are not balanced,which restricts the high-quality economic development to some extent.To this end,this paper attempts to study the affect of the business environment on economic development based on the urban perspective.According to the analytical paradigm of “theoretical analysis-positive research”,this paper uses the classical theories which include institutional economics,growth theory and expectation theory to analyze the effect of the business environment on regional economic development.Using the business environment and economic development data of 29 major cities in 2008 and Shanghai in 2004-2018,this paper examines the important effect of the business environment on economic development.The empirical results show that the business environment has important effects on economic development.The business environment has significant effects on the agglomeration of economic development factors,the high level of business environment will promote the agglomeration of labors and investment in the region.The business environment has significant effects on the vitality of economic development,the high level of business environment will promote the non-public economy,especially the private economy,the development of the tertiary industry and the improvement of regional R&D investment levels in the region.The business environment has significant effects on the efficiency of economic development,the high-level business environment will be upgraded resource allocation efficiency to improve indicators such as GDP per capita.Combined with the research conclusions,the paper analyzes the significance of building a high-level business environment and puts forward some directional suggestions for building a high-level business environment.Based on the urban perspective,this paper explains the important effect of the business environment on economic development from both theoretical and empirical aspects,and deepens the relevant research on the business environment to promote economic development.At the practical level,it has further deepened the understanding of the importance and regularity of the business environment to promote economic development.