Can Better Business Environments Promote Local Agriculture Development? Evidence From RCEP

Since 1992 to 2003, global agricultural GDP has been hovering between 3% and 4%, while RCEP still contributes 8% to 17% annually. Is the active business atmosphere in the RCEP region an opportunity to promote agricultural development. To verify this, our study collected key variables: World Bank agricultural indicators and business facilitation scores from 2010 to 2020, with agricultural assets, employment, and technological levels as control variables. Empirical analysis shows that the business environment of RCEP promotes regional agricultural economic development, with most indicators reaching or exceeding the high-income group. The favorable business environment promotes agricultural economic growth and advances in patented technology, but has a negative impact on labor development. The impact of agricultural investment on agricultural economy will decrease with the increase of national income level; On the other hand, labor force is the opposite; The impact of patented technology development on agricultural economy is extremely weak. Therefore, differentiated Commerce policies should be adopted for different income countries.