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Performance of Manufacturing Firms in Africa : An Empirical Analysis

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 Microdata Set
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Washington, DC: World Bank
Africa | Sub-Saharan Africa
Dinh, Hinh T. | Clarke, George R.G.
2012-12-11T20:04:10Z | 2012-12-11T20:04:10Z | 2012-08-07

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.

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