Determinants of Productivity-enhancing Structural Change and the Role of Business Environment

This report is focused on understanding how the business environment influences productivity growth. Our findings highlight the East Asia region’s achievements, driven by a business environment that prioritises market efficiency. This research underscores the power of market efficiency as a determinant in guiding regions toward productivity-enhancing structural shifts. While previous studies have approached these topics from various angles, our empirical exploration offers fresh insights, emphasizing the importance of strategic policy decisions. It highlights the need for innovative initiatives, especially in sectors grappling with stagnation, and the creation of a business environment that promotes competition and adaptability.