The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions?
Using survey data from 86,000 enterprises in 104 countries, including 17,000 enterprises in 31 Sub-Saharan African countries, this paper finds that average enterprise-level employment growth rates are remarkably similar across regions. This is true...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100223151145 http://hdl.handle.net/10986/3704 |
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okr-10986-37042021-04-23T14:02:12Z The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? Aterido, Reyes Hallward-Driemeier, Mary ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO SERVICES ACCOUNTING ACCOUNTING SERVICES ADVANCED TECHNOLOGIES AFFILIATED ORGANIZATIONS BANK LOANS BANKS BENEFICIAL EFFECTS BRIBE BRIBES BUSINESS ENVIRONMENT CONTRACT ENFORCEMENT CORRUPTION CREDIT CONSTRAINTS CREDIT PROVISION CREDIT RELATIONSHIPS CREDITOR DEMAND FOR CREDIT DEVELOPMENT BANK DEVELOPMENT ECONOMICS EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENDOWMENTS ENTERPRISE DEVELOPMENT ENTERPRISE GROWTH ENTERPRISE SIZE ENTERPRISE SIZES ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXCLUSION EXPANSION EXTERNAL FINANCING FINANCIAL MEASURE FIRM SIZE FIRMS FOREIGN CAPITAL FOREIGN ENTERPRISES FOREIGN OWNED ENTERPRISES GOVERNMENT REGULATIONS GREATER ACCESS INCOME INCOME GROUP INCOME GROUPS INFLATION INFORMATION ON ENTERPRISE INFORMATION ON ENTERPRISES INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATE CONDITIONS INVESTMENT CLIMATE CONSTRAINTS JOB CREATION LABOR INTENSIVE TECHNOLOGIES LABOR MARKETS LABOR REGULATIONS LABOUR LACK OF ACCESS LARGE ENTERPRISES LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN MACROECONOMICS MANUFACTURING ENTERPRISE MANUFACTURING ENTERPRISES MARKET DEVELOPMENT MEDIUM ENTERPRISES MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISES OVERDRAFT PRIVATE INVESTMENT PRODUCTIVE ENTERPRISES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC INVESTMENT PUBLIC SERVICES RED TAPE REGULATORY BURDENS RESOURCE ALLOCATION RETAINED EARNINGS SAFETY SAFETY NETS SALES GROWTH SIZE OF ENTERPRISE SIZE OF ENTERPRISES SMALL ENTERPRISE SMALL ENTERPRISES SMALL FIRMS SMALL ENTERPRISE SME TAX ADMINISTRATION TAXATION TRADE CREDIT TRANSPORT WORKING CAPITAL Using survey data from 86,000 enterprises in 104 countries, including 17,000 enterprises in 31 Sub-Saharan African countries, this paper finds that average enterprise-level employment growth rates are remarkably similar across regions. This is true despite significant differences in the quality of the investment climate in which these enterprises operate. Objective measures of investment climate conditions (including the number of outages, the share of firms with bank loans, and others) indicate that conditions are most challenging within Sub-Saharan Africa, as well as for smaller enterprises. However, enterprises employment in Sub-Saharan Africa is less sensitive to changes in access to infrastructure and finance relative to other low-income regions. This can be understood by looking at non-linear effects by firm size -- and the finding that these size effects are particularly strong within Sub-Saharan Africa. Although unreliable infrastructure services and inadequate access to finance generally hamper growth, in Sub-Saharan Africa they are actually associated with higher employment growth rates among micro enterprises. Although employment growth is good news in Sub-Saharan Africa, that much of the expanded employment is in small, labor-intensive, less productive enterprises raises longer-run concerns about the efficiency of the allocation of resources and aggregate productivity growth in the region. 2012-03-19T18:38:13Z 2012-03-19T18:38:13Z 2010-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100223151145 http://hdl.handle.net/10986/3704 English Policy Research working paper ; no. WPS 5218 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO SERVICES ACCOUNTING ACCOUNTING SERVICES ADVANCED TECHNOLOGIES AFFILIATED ORGANIZATIONS BANK LOANS BANKS BENEFICIAL EFFECTS BRIBE BRIBES BUSINESS ENVIRONMENT CONTRACT ENFORCEMENT CORRUPTION CREDIT CONSTRAINTS CREDIT PROVISION CREDIT RELATIONSHIPS CREDITOR DEMAND FOR CREDIT DEVELOPMENT BANK DEVELOPMENT ECONOMICS EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENDOWMENTS ENTERPRISE DEVELOPMENT ENTERPRISE GROWTH ENTERPRISE SIZE ENTERPRISE SIZES ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXCLUSION EXPANSION EXTERNAL FINANCING FINANCIAL MEASURE FIRM SIZE FIRMS FOREIGN CAPITAL FOREIGN ENTERPRISES FOREIGN OWNED ENTERPRISES GOVERNMENT REGULATIONS GREATER ACCESS INCOME INCOME GROUP INCOME GROUPS INFLATION INFORMATION ON ENTERPRISE INFORMATION ON ENTERPRISES INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATE CONDITIONS INVESTMENT CLIMATE CONSTRAINTS JOB CREATION LABOR INTENSIVE TECHNOLOGIES LABOR MARKETS LABOR REGULATIONS LABOUR LACK OF ACCESS LARGE ENTERPRISES LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN MACROECONOMICS MANUFACTURING ENTERPRISE MANUFACTURING ENTERPRISES MARKET DEVELOPMENT MEDIUM ENTERPRISES MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISES OVERDRAFT PRIVATE INVESTMENT PRODUCTIVE ENTERPRISES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC INVESTMENT PUBLIC SERVICES RED TAPE REGULATORY BURDENS RESOURCE ALLOCATION RETAINED EARNINGS SAFETY SAFETY NETS SALES GROWTH SIZE OF ENTERPRISE SIZE OF ENTERPRISES SMALL ENTERPRISE SMALL ENTERPRISES SMALL FIRMS SMALL ENTERPRISE SME TAX ADMINISTRATION TAXATION TRADE CREDIT TRANSPORT WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FORMAL FINANCE ACCESS TO SERVICES ACCOUNTING ACCOUNTING SERVICES ADVANCED TECHNOLOGIES AFFILIATED ORGANIZATIONS BANK LOANS BANKS BENEFICIAL EFFECTS BRIBE BRIBES BUSINESS ENVIRONMENT CONTRACT ENFORCEMENT CORRUPTION CREDIT CONSTRAINTS CREDIT PROVISION CREDIT RELATIONSHIPS CREDITOR DEMAND FOR CREDIT DEVELOPMENT BANK DEVELOPMENT ECONOMICS EARNINGS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT TRENDS ENDOWMENTS ENTERPRISE DEVELOPMENT ENTERPRISE GROWTH ENTERPRISE SIZE ENTERPRISE SIZES ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXCLUSION EXPANSION EXTERNAL FINANCING FINANCIAL MEASURE FIRM SIZE FIRMS FOREIGN CAPITAL FOREIGN ENTERPRISES FOREIGN OWNED ENTERPRISES GOVERNMENT REGULATIONS GREATER ACCESS INCOME INCOME GROUP INCOME GROUPS INFLATION INFORMATION ON ENTERPRISE INFORMATION ON ENTERPRISES INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATE CONDITIONS INVESTMENT CLIMATE CONSTRAINTS JOB CREATION LABOR INTENSIVE TECHNOLOGIES LABOR MARKETS LABOR REGULATIONS LABOUR LACK OF ACCESS LARGE ENTERPRISES LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN MACROECONOMICS MANUFACTURING ENTERPRISE MANUFACTURING ENTERPRISES MARKET DEVELOPMENT MEDIUM ENTERPRISES MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISES OVERDRAFT PRIVATE INVESTMENT PRODUCTIVE ENTERPRISES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC INVESTMENT PUBLIC SERVICES RED TAPE REGULATORY BURDENS RESOURCE ALLOCATION RETAINED EARNINGS SAFETY SAFETY NETS SALES GROWTH SIZE OF ENTERPRISE SIZE OF ENTERPRISES SMALL ENTERPRISE SMALL ENTERPRISES SMALL FIRMS SMALL ENTERPRISE SME TAX ADMINISTRATION TAXATION TRADE CREDIT TRANSPORT WORKING CAPITAL Aterido, Reyes Hallward-Driemeier, Mary The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| geographic_facet |
Africa The World Region |
| relation |
Policy Research working paper ; no. WPS 5218 |
| description |
Using survey data from 86,000
enterprises in 104 countries, including 17,000 enterprises
in 31 Sub-Saharan African countries, this paper finds that
average enterprise-level employment growth rates are
remarkably similar across regions. This is true despite
significant differences in the quality of the investment
climate in which these enterprises operate. Objective
measures of investment climate conditions (including the
number of outages, the share of firms with bank loans, and
others) indicate that conditions are most challenging within
Sub-Saharan Africa, as well as for smaller enterprises.
However, enterprises employment in Sub-Saharan Africa is
less sensitive to changes in access to infrastructure and
finance relative to other low-income regions. This can be
understood by looking at non-linear effects by firm size --
and the finding that these size effects are particularly
strong within Sub-Saharan Africa. Although unreliable
infrastructure services and inadequate access to finance
generally hamper growth, in Sub-Saharan Africa they are
actually associated with higher employment growth rates
among micro enterprises. Although employment growth is good
news in Sub-Saharan Africa, that much of the expanded
employment is in small, labor-intensive, less productive
enterprises raises longer-run concerns about the efficiency
of the allocation of resources and aggregate productivity
growth in the region. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Aterido, Reyes Hallward-Driemeier, Mary |
| author_facet |
Aterido, Reyes Hallward-Driemeier, Mary |
| author_sort |
Aterido, Reyes |
| title |
The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| title_short |
The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| title_full |
The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| title_fullStr |
The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| title_full_unstemmed |
The Impact of the Investment Climate on Employment Growth : Does Sub-Saharan Africa Mirror Other Low-Income Regions? |
| title_sort |
impact of the investment climate on employment growth : does sub-saharan africa mirror other low-income regions? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100223151145 http://hdl.handle.net/10986/3704 |
| _version_ |
1764387903911231488 |