Assessing the Impact of Major Political and Institutional Factors on New Businesses: The Case of Qatar

Abstract

This chapter provides an assessment of the impact of the major political and institutional factors on establishing new businesses in the State of Qatar in the long run using the autoregressive distributed lag (ARDL) model. In particular, we are interested in studying the following political and institutional factors: political stability, rule of law, regulatory quality, control of corruption, and voice and accountability on new businesses registered. Empirical results indicate that political stability is found to have the strongest positive and significant impact among all other political and institutional variables, followed by rule of law, and control of corruption, while regulatory quality and voice and accountability are found to have an insignificant effect on new businesses registered. The outcome of this study helps policymakers in Qatar in figuring out the main political and institutional policies that need improvement to further develop and promote the private sector. 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.