Interrelationship between macroeconomic policies and business environment
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Explanation:
The purpose of this paper is to analyze the relationship between macroeconomic environment and financial market development for 144 countries that survived in global competitiveness report of 2012-13. The paper used Canonical Correlation Analysis as a multi-variable statistical approach for measuring linear relationship between different groups of variables. The research's methodology is descriptive-correlation. The results suggest that a significant and positive relationship between two variables exists; the set of " Macroeconomic Environment " and the set of " Financial Market Development ". Accordingly, the results show that, in " Macroeconomic environment " sub-criteria, " Country credit rating " and " Inflation " play momentous roles. And also in " Financial market development " sub-indexes, " Availability of financial services " , " Regulation of securities exchanges " , and " Affordability of financial services " have the most impact on creating a meaningful relationship. The concept of competitiveness has attracted abundant attentions of both scholars and governors during the past decade. This paper provide benchmarking tools for business leaders and policymakers to identify obstacles to improve competitiveness, thus stimulating discussion on the best strategies and policies to overcome them in " Macroeconomic environment " and " Financial market development " issues. It also provides some useful information for improving national competitiveness in countries