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Performance of Manufacturing Firms in Africa : An Empirical Analysis

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World Bank (WB)

Abstract: This book sheds light on the characteristics of formal and informal manufacturing firms in Africa by comparing these firms with firms in other regions. Drawing on two data sources, the authors find that there is a very low share of manufacturing in GDP in Africa and in African exports. Most African manufacturing firms are informal. These firms are also smaller than firms in other regions and few export. Labor productivity is low in Africa relative to other regions, but this may be because of the more challenging environment - with the lack of physical infrastructure, the heavy burden of business regulation, and other issues. However, after accounting for these differences, the authors find that firms in Sub-Saharan Africa appear more, not less, productive than firms elsewhere. This analysis suggests that improving the business environment might allow firms to enhance their performance. However, given the pervasive distortions in the business environment and the limited resources at the disposal of most African countries, Africa cannot and should not wait until the business environment becomes healthier before growing a more viable manufacturing sector. The book shows that binding constraints vary by country, by sector, and by firm size. Therefore, countries should identify the constraints in the most promising sectors and adopt policies designed specifically to remove these constraints. The evidence in this book overwhelmingly dispels the false notion of Africa's inability to compete globally in manufacturing goods.
Type: Publications & Research :: Publication
Publications & Research :: Publication
Link: http://documents.worldbank.org/curated/en/2012/08/16587819/performance-manufacturing-firms-africa-empirical-analysis
978-082-13-9632-2
http://hdl.handle.net/10986/11959
Subject: ACCESS TO CREDIT
ACCESS TO FINANCE
ACCESS TO MARKETS
ACCOUNTING
AFFILIATE
BANK ACCOUNT
BANK ACCOUNTS
BANK CREDIT
BANK LOANS
BANKS
BRIBES
BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENTS
BUSINESS OPERATIONS
BUSINESS REGULATION
BUSINESSES
CAPABILITIES
CC
COLLATERAL
COLLATERAL REQUIREMENTS
COMMERCE
COMMODITIES
COMMUNICATIONS INFRASTRUCTURE
COMPANY
COMPARATIVE ADVANTAGE
COMPETITIVE MARKETS
COMPETITORS
CORPORATE GOVERNANCE
CORRUPTION
COUNTRY COMPARISONS
CURRENT ACCOUNT
CUSTOMS
DELIVERY SYSTEM
DIVERSIFICATION
E-MAIL
ECONOMETRICS
ECONOMIC ACTIVITIES
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMICS
EDUCATIONAL ATTAINMENT
ELECTRICITY
EMERGING MARKETS
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EMPLOYMENT GROWTH
ENTERPRISE DEVELOPMENT
ENTERPRISE SURVEY
ENTERPRISE SURVEYS
ENTREPRENEUR
ENTREPRENEURS
ENVIRONMENTS
EQUIPMENT
EXPANSION
EXPORT EARNINGS
EXPORT MARKET
EXTERNAL FINANCE
FINANCIAL ACCESS
FINANCIAL SUPPORT
FIRM SIZE
FIRMS
FOREIGN FIRMS
GLOBALIZATION
GOVERNMENT INTERVENTIONS
GOVERNMENT REVENUE
GOVERNMENT SERVICES
HOUSING
HUMAN CAPITAL
HUMAN RESOURCES
INCOME DISTRIBUTION
INDUSTRIAL DEVELOPMENT
INFORMAL ECONOMY
INFORMATION TECHNOLOGY
INNOVATION
INNOVATIONS
INTEREST RATES
INTERMEDIATE INPUTS
INTERNATIONAL BANK
INTERNATIONAL COMPETITION
INTERNATIONAL COMPETITIVENESS
INTERNATIONAL MARKET
INTERNATIONAL STANDARD
INTERNATIONAL STANDARDS
INTERNATIONAL TRADE
LABOR COSTS
LABOR INPUTS
LABOR MARKET
LABOR PRODUCTIVITY
LACK OF CREDIT
LAWS
LICENSE
LICENSES
LICENSING
LOAN
LOCAL BUSINESS
MANUFACTURERS
MANUFACTURING
MANUFACTURING INDUSTRIES
MARGINAL BENEFITS
MARKET COMPETITION
MEDIUM ENTERPRISE
MEDIUM ENTERPRISES
MICROENTERPRISES
MINIMUM WAGES
MULTINATIONAL
NETWORKS
OVERDRAFT
PARTY
PDF
PENALTIES
PHOTO
PHYSICAL INFRASTRUCTURE
POLICY ENVIRONMENTS
POLICY MAKERS
POLITICAL ECONOMY
PRIVATE INVESTMENT
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PRODUCERS
PRODUCTION PROCESS
PROPERTY RIGHTS
PURCHASING POWER
PURCHASING POWER PARITY
QUERIES
QUOTAS
REGISTRATION REQUIREMENTS
REGULATORY BURDEN
REGULATORY ENVIRONMENT
RESULT
RESULTS
RETAIL TRADE
SALES GROWTH
SAVINGS
SAVINGS ACCOUNT
SHADOW ECONOMIES
SHADOW ECONOMY
SMALL ENTERPRISES
SMALL FIRM
SMALL FIRMS
SOCIAL NETWORKS
SUPPLIERS
TAX ADMINISTRATION
TAX RATES
TAXATION
TECHNICAL EXPERTISE
TELECOM
TELECOMMUNICATIONS
TELEPHONE
TRADE CREDIT
TRADE FACILITATION
TRANSLATION
TRANSPORT
TRANSPORTATION INFRASTRUCTURE
UNEMPLOYMENT
UNION
USES
WAGES
WEB
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