Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data

This paper investigates the relationship between the productivity of African manufacturing firms and their access to services inputs. We use data from the World Bank Enterprise Survey for over 1,000 firms in ten Sub-Saharan African countries to calculate the total factor productivity of firms. The E...

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Main Authors: Arnold, Jens Matthias, Mattoo, Aaditya, Narciso, Gaia
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4701
id okr-10986-4701
recordtype oai_dc
spelling okr-10986-47012021-04-23T14:02:19Z Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data Arnold, Jens Matthias Mattoo, Aaditya Narciso, Gaia Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Firm Performance: Size, Diversification, and Scope L250 Industry Studies: Manufacturing: General L600 Industrialization Manufacturing and Service Industries Choice of Technology O140 Economic Development: Human Resources Human Development Income Distribution Migration O150 This paper investigates the relationship between the productivity of African manufacturing firms and their access to services inputs. We use data from the World Bank Enterprise Survey for over 1,000 firms in ten Sub-Saharan African countries to calculate the total factor productivity of firms. The Enterprise Surveys also contain unique measures of firms' access to communications, electricity and financial services. The availability of these measures at the firm level, both as subjective and objective indicators, allows us to exploit the variation in services performance at the sub-national regional level. Furthermore, by using the regional variation in services performance, we are also able to address concerns about the possible endogeneity of the services variables. Our results show a significant and positive relationship between firm productivity and service performance in all three services sectors analysed. The paper thus provides support for the argument that improvements in services industries contribute to enhancing the performance of downstream economic activities, and thus are an essential element of a strategy for promoting growth and reducing poverty. 2012-03-30T07:29:18Z 2012-03-30T07:29:18Z 2008 Journal Article Journal of African Economies 09638024 http://hdl.handle.net/10986/4701 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Production
Cost
Capital, Total Factor, and Multifactor Productivity
Capacity D240
Welfare and Poverty: Government Programs
Provision and Effects of Welfare Programs I380
Firm Performance: Size, Diversification, and Scope L250
Industry Studies: Manufacturing: General L600
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
spellingShingle Production
Cost
Capital, Total Factor, and Multifactor Productivity
Capacity D240
Welfare and Poverty: Government Programs
Provision and Effects of Welfare Programs I380
Firm Performance: Size, Diversification, and Scope L250
Industry Studies: Manufacturing: General L600
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Arnold, Jens Matthias
Mattoo, Aaditya
Narciso, Gaia
Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This paper investigates the relationship between the productivity of African manufacturing firms and their access to services inputs. We use data from the World Bank Enterprise Survey for over 1,000 firms in ten Sub-Saharan African countries to calculate the total factor productivity of firms. The Enterprise Surveys also contain unique measures of firms' access to communications, electricity and financial services. The availability of these measures at the firm level, both as subjective and objective indicators, allows us to exploit the variation in services performance at the sub-national regional level. Furthermore, by using the regional variation in services performance, we are also able to address concerns about the possible endogeneity of the services variables. Our results show a significant and positive relationship between firm productivity and service performance in all three services sectors analysed. The paper thus provides support for the argument that improvements in services industries contribute to enhancing the performance of downstream economic activities, and thus are an essential element of a strategy for promoting growth and reducing poverty.
format Journal Article
author Arnold, Jens Matthias
Mattoo, Aaditya
Narciso, Gaia
author_facet Arnold, Jens Matthias
Mattoo, Aaditya
Narciso, Gaia
author_sort Arnold, Jens Matthias
title Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
title_short Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
title_full Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
title_fullStr Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
title_full_unstemmed Services Inputs and Firm Productivity in Sub-Suharan Africa: Evidence from Firm-Level Data
title_sort services inputs and firm productivity in sub-suharan africa: evidence from firm-level data
publishDate 2012
url http://hdl.handle.net/10986/4701
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