INSTITUTIONAL DETERMINANTS OF CREDIT ACCESSIBILITY: A CROSS- COUNTRY ANALYSIS USING DOING BUSINESS INDICATORS
Keywords:
access to finance, credit markets, financial development, institutional quality, economic growthAbstract
Business development, entrepreneurship and the overall economic growth largely depend on access to credit, which alsodiffers greatly among countries based on institutional and regulatory environment differences. The nature of businessregulations on access to credit is hence important in enhancing the operations of the financial markets and the promotionof economic growth. This study examines the relationship between selected business regulatory indicators and access tocredit across countries. Aquantitative panel research design was employed using data from the World Bank DoingBusiness historical database. After data cleaning and filtering, the final dataset consisted of 1062 observations coveringmultiple economies and years. The analysis included descriptive statistics, Pearson correlation analysis, graphicalassessment, and a fixed-effects regression model with clustered standard errors to evaluate the influence of regulatoryindicators on credit accessibility. The results indicate that starting a business, enforcing contracts, and resolvinginsolvency have positive and statistically significant effects on access to credit, suggesting that improvements in regulatoryefficiency and legal frameworks can support better lending conditions. In contrast, registering property and paying taxeswere not statistically significant in the fixed-effects model. The findings highlight the importance of institutional qualityin shaping financial accessibility and suggest that reforms aimed at strengthening legal systems and reducing administrative barriers may improve credit market development across economy.
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