The impact of local economic governance quality on the development of the enterprise system in the Central key economic region

Abstract

The quality of local economic governance plays a crucial role in promoting socio-economic development, particularly the enterprise system. Trends indicate that the quality of local economic governance in the Central key economic region positively impacts the development of the enterprise system. Using quantitative tools, the article indicates that the size of the economy, low market entry costs, low informal costs, and effective labor training policies significant affect the development of the enterprise system. Conversely, the article does not find statistically significant impacts of factors such as land accessibility, low time costs, transparent business environment, effective business support services, and good local legal systems on the development of the enterprise system. Based on these findings, the article proposes several implications suitable for the development of the enterprise system in localities in the Central key economic region.