The Effects of Pollution and Business Environment on Firm Productivity in Africa

In this paper, we explore the links between city competitiveness and air pollution and business environment. Because competitive cities not only attract more productive firms but also facilitate their business, we choose to look at firm performance as a proxy for city competitiveness. We particularl...

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Main Authors:	Soppelsa, Maria E., Lozano-Gracia, Nancy, Xu, L. Colin
Format:	Journal Article
Published:	Sage Publications 2020
Subjects:	CITY COMPETITIVENESS BUSINESS ENVIRONMENT AIR POLLUTION FIRM PRODUCTIVITY AGGLOMERATION ECONOMIES LABOR PRODUCTIVITY
Online Access:	http://hdl.handle.net/10986/33662

id	okr-10986-33662
recordtype	oai_dc
spelling	okr-10986-336622021-05-25T10:54:44Z The Effects of Pollution and Business Environment on Firm Productivity in Africa Soppelsa, Maria E. Lozano-Gracia, Nancy Xu, L. Colin CITY COMPETITIVENESS BUSINESS ENVIRONMENT AIR POLLUTION FIRM PRODUCTIVITY AGGLOMERATION ECONOMIES LABOR PRODUCTIVITY In this paper, we explore the links between city competitiveness and air pollution and business environment. Because competitive cities not only attract more productive firms but also facilitate their business, we choose to look at firm performance as a proxy for city competitiveness. We particularly focus on African firms because this region is developing fast, experiencing increasing pollution levels and the effects of agglomeration economies. We find two interesting results. First, the negative association between air pollution and firm performance can be seen at lower than expected levels of pollution. Second, the effects of capacity agglomeration on labor productivity growth are stronger compared to other regions. These findings suggest that cities in this region should address pollution issues soon, as they continue to grow fast and pollution levels becoming an increasing concern. 2020-04-29T15:57:07Z 2020-04-29T15:57:07Z 2020 Journal Article The Journal of Environment and Development http://hdl.handle.net/10986/33662 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Sage Publications Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	CITY COMPETITIVENESS BUSINESS ENVIRONMENT AIR POLLUTION FIRM PRODUCTIVITY AGGLOMERATION ECONOMIES LABOR PRODUCTIVITY
spellingShingle	CITY COMPETITIVENESS BUSINESS ENVIRONMENT AIR POLLUTION FIRM PRODUCTIVITY AGGLOMERATION ECONOMIES LABOR PRODUCTIVITY Soppelsa, Maria E. Lozano-Gracia, Nancy Xu, L. Colin The Effects of Pollution and Business Environment on Firm Productivity in Africa
description	In this paper, we explore the links between city competitiveness and air pollution and business environment. Because competitive cities not only attract more productive firms but also facilitate their business, we choose to look at firm performance as a proxy for city competitiveness. We particularly focus on African firms because this region is developing fast, experiencing increasing pollution levels and the effects of agglomeration economies. We find two interesting results. First, the negative association between air pollution and firm performance can be seen at lower than expected levels of pollution. Second, the effects of capacity agglomeration on labor productivity growth are stronger compared to other regions. These findings suggest that cities in this region should address pollution issues soon, as they continue to grow fast and pollution levels becoming an increasing concern.
format	Journal Article
author	Soppelsa, Maria E. Lozano-Gracia, Nancy Xu, L. Colin
author_facet	Soppelsa, Maria E. Lozano-Gracia, Nancy Xu, L. Colin
author_sort	Soppelsa, Maria E.
title	The Effects of Pollution and Business Environment on Firm Productivity in Africa
title_short	The Effects of Pollution and Business Environment on Firm Productivity in Africa
title_full	The Effects of Pollution and Business Environment on Firm Productivity in Africa
title_fullStr	The Effects of Pollution and Business Environment on Firm Productivity in Africa
title_full_unstemmed	The Effects of Pollution and Business Environment on Firm Productivity in Africa
title_sort	effects of pollution and business environment on firm productivity in africa
publisher	Sage Publications
publishDate	2020
url	http://hdl.handle.net/10986/33662
_version_	1764479248334061568

The Effects of Pollution and Business Environment on Firm Productivity in Africa

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