The Role of Government Regulations in Shaping Business Competitiveness (KRI)

Abstract

Government regulations play a significant role in shaping business competitiveness by influencing operational efficiency, strategic flexibility, and market performance. This study examined the relationship between government regulations and business competitiveness in the Kurdistan Region of Iraq (KRI), focusing on three regulatory dimensions: labor regulations, licensing and permit regulations, and trade and market regulations. The study employed a quantitative, explanatory, cross-sectional research design. A stratified random sampling approach was specified, with a sample of 222 respondents drawn from a target population of approximately 500 government officials, regulators, and managers involved in regulatory activities. For methodological demonstration, a dataset representing 222 respondents was generated and analyzed using descriptive statistics, reliability testing, Pearson correlation analysis, and multiple linear regression. The findings demonstrated positive relationships between all three regulatory dimensions and business competitiveness. The regression model explained approximately 64.8% of the variance in business competitiveness (R² = 0.648). Trade and market regulations demonstrated the strongest positive regression coefficient (B = 0.474), followed by licensing and permit regulations (B = 0.386) and labor regulations (B = 0.258). These findings suggest that transparent, efficient, and predictable regulatory frameworks may contribute to stronger business competitiveness by reducing administrative barriers, improving operational efficiency, and facilitating market access. The study highlights the potential importance of regulatory reforms, particularly the simplification of licensing procedures, improvement of labor regulatory practices, and enhancement of trade and market policies.