This paper examines the impact of business environment optimization on enterprise development, labor income share, and capital accumulation. The study finds that improving the business environment, particularly through reforms in administrative approvals, credit supervision, and business registration, not only reduces market entry barriers but also fosters innovation and entrepreneurial vitality, thereby influencing industrial structure upgrading, labor income share, and capital accumulation. By analyzing experiences from China and other countries, this paper reveals that, during the early stages of business environment improvement, labor income share may initially decrease due to accelerated capital accumulation. However, as market mechanisms mature and industrial structures are optimized, labor income share eventually increases. The paper further explores the long-term impact of technological advancement, capital deepening, and globalization on labor income share, providing policy recommendations on how to balance the interests of capital and labor in income distribution.
Business Environment, Labar Income Share, Deregulations
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