Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005
This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearanc...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2010/01/11699361/assessing-impact-infrastructure-quality-firm-productivity-africa-cross-country-comparisons-based-investment-climate-surveys-1999-2005 http://hdl.handle.net/10986/19901 |
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okr-10986-19901 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECTS AFFORDABILITY OF INFRASTRUCTURE SERVICES AIR AIR TRANSPORT ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BENCHMARK BOOK VALUE BOTTLENECKS BUSINESS INDICATORS CAPITAL STOCK COMMUNICATIONS TECHNOLOGY COMPETITIVE MARKETS COMPETITIVE PRODUCTS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER PRICE INDEX CUSTOM CUSTOMER DEMANDS CUSTOMS CUSTOMS CLEARANCE DEFLATORS DEPRECIATION RATE DEVELOPMENT ASSISTANCE DRIVERS E-BUSINESSES ECONOMETRIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC RESULTS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ELASTICITIES ELASTICITY ELECTRICITY ELECTRICITY GENERATORS ELECTRICITY SUPPLY EMPLOYMENT EQUIPMENT EXPECTED RETURNS EXPORT PERFORMANCE EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FUEL FUNCTIONAL FORMS GDP GDP PER CAPITA GEOGRAPHICAL AREA GEOGRAPHICAL AREAS GLOBAL ECONOMY GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HUMAN CAPITAL ICT IMPACT OF TELECOMMUNICATIONS IMPERFECT INFORMATION INCOME LEVELS INEFFICIENCY INFORMATION TECHNOLOGY INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INNOVATION INTERNATIONAL COMPARISONS INTERNATIONAL MARKETS INTERNATIONAL STANDARD INVENTORY INVESTMENT CLIMATE LABOR COSTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR PRODUCTIVITY LABOR RELATIONS LICENSE LICENSES MANUFACTURING MANUFACTURING INDUSTRY MARGINAL PRODUCTIVITY MARKET CONDITIONS MARKET SHARE MARKET SHARES MARKETING MISSING VALUES MONOPOLIES PER CAPITA INCOME PERFORMANCE MEASURES PERFORMANCE OF GOVERNMENT PERFORMANCES PHONE CONNECTION PHYSICAL INFRASTRUCTURE PORT INFRASTRUCTURE POWER PRIVATE CAPITAL PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRODUCTION FUNCTION PRODUCTIVITY PUBLIC INVESTMENT PUBLIC PRIVATE INFRASTRUCTURE QUALITY OF TRANSPORTATION R&D RAILROAD RAILWAYS REAL WAGES REGRESSION ANALYSES REGRESSION ANALYSIS RESULT RESULTS ROADS SANITATION SENSITIVITY ANALYSIS SUPPLIERS TAX TAX INCENTIVES TELECOM TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TELEPHONE TELEPHONE LINES TOTAL FACTOR PRODUCTIVITY TRADE SERVICES TRANSACTION TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES TRUE USES WAGES WATER INFRASTRUCTURE |
| spellingShingle |
ADVERSE EFFECTS AFFORDABILITY OF INFRASTRUCTURE SERVICES AIR AIR TRANSPORT ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BENCHMARK BOOK VALUE BOTTLENECKS BUSINESS INDICATORS CAPITAL STOCK COMMUNICATIONS TECHNOLOGY COMPETITIVE MARKETS COMPETITIVE PRODUCTS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER PRICE INDEX CUSTOM CUSTOMER DEMANDS CUSTOMS CUSTOMS CLEARANCE DEFLATORS DEPRECIATION RATE DEVELOPMENT ASSISTANCE DRIVERS E-BUSINESSES ECONOMETRIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC RESULTS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ELASTICITIES ELASTICITY ELECTRICITY ELECTRICITY GENERATORS ELECTRICITY SUPPLY EMPLOYMENT EQUIPMENT EXPECTED RETURNS EXPORT PERFORMANCE EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FUEL FUNCTIONAL FORMS GDP GDP PER CAPITA GEOGRAPHICAL AREA GEOGRAPHICAL AREAS GLOBAL ECONOMY GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HUMAN CAPITAL ICT IMPACT OF TELECOMMUNICATIONS IMPERFECT INFORMATION INCOME LEVELS INEFFICIENCY INFORMATION TECHNOLOGY INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INNOVATION INTERNATIONAL COMPARISONS INTERNATIONAL MARKETS INTERNATIONAL STANDARD INVENTORY INVESTMENT CLIMATE LABOR COSTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR PRODUCTIVITY LABOR RELATIONS LICENSE LICENSES MANUFACTURING MANUFACTURING INDUSTRY MARGINAL PRODUCTIVITY MARKET CONDITIONS MARKET SHARE MARKET SHARES MARKETING MISSING VALUES MONOPOLIES PER CAPITA INCOME PERFORMANCE MEASURES PERFORMANCE OF GOVERNMENT PERFORMANCES PHONE CONNECTION PHYSICAL INFRASTRUCTURE PORT INFRASTRUCTURE POWER PRIVATE CAPITAL PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRODUCTION FUNCTION PRODUCTIVITY PUBLIC INVESTMENT PUBLIC PRIVATE INFRASTRUCTURE QUALITY OF TRANSPORTATION R&D RAILROAD RAILWAYS REAL WAGES REGRESSION ANALYSES REGRESSION ANALYSIS RESULT RESULTS ROADS SANITATION SENSITIVITY ANALYSIS SUPPLIERS TAX TAX INCENTIVES TELECOM TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TELEPHONE TELEPHONE LINES TOTAL FACTOR PRODUCTIVITY TRADE SERVICES TRANSACTION TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES TRUE USES WAGES WATER INFRASTRUCTURE Escribano, Alvaro Guasch, J. Luis Pena, Jorge Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| geographic_facet |
Africa |
| relation |
Policy Research Working Paper;No. 5191 |
| description |
This paper provides a systematic,
empirical assessment of the impact of infrastructure quality
on the total factor productivity (TFP) of African
manufacturing firms. This measure is understood to include
quality in the provision of customs clearance, energy,
water, sanitation, transportation, telecommunications, and
information and communications technology (ICT).
Microeconometric techniques to investment climate surveys
(ICSs) of 26 African countries are carried out in different
years during the period 2002 6, making country-specific
evaluations of the impact of investment climate (IC) quality
on aggregate TFP, average TFP, and allocative efficiency.
For each country the impact is evaluated based on 10
different productivity measures. Results are robust once
controlled for observable fixed effects (red tape,
corruption and crime, finance, innovation and labor skills,
etc.) obtained from the ICSs. African countries are ranked
according to several indices: per capita income, ease of
doing business, firm perceptions of growth bottlenecks, and
the concept of demeaned productivity (Olley and Pakes 1996).
The countries are divided into two blocks:
high-income-growth and low-income-growth. Infrastructure
quality has a low impact on TFP in countries of the first
block and a high (negative) impact in countries of the
second. There is significant heterogeneity in the individual
infrastructure elements affecting countries from both
blocks. Poor-quality electricity provision affects mainly
poor countries, whereas problems dealing with customs while
importing or exporting affects mainly faster-growing
countries. Losses from transport interruptions affect mainly
slower-growing countries. Water outages affect mainly
slower-growing countries. There is also some heterogeneity
among countries in the infrastructure determinants of the
allocative efficiency of African firms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Escribano, Alvaro Guasch, J. Luis Pena, Jorge |
| author_facet |
Escribano, Alvaro Guasch, J. Luis Pena, Jorge |
| author_sort |
Escribano, Alvaro |
| title |
Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| title_short |
Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| title_full |
Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| title_fullStr |
Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| title_full_unstemmed |
Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 |
| title_sort |
assessing the impact of infrastructure quality on firm productivity in africa : cross-country comparisons based on investment climate surveys from 1999 to 2005 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2010/01/11699361/assessing-impact-infrastructure-quality-firm-productivity-africa-cross-country-comparisons-based-investment-climate-surveys-1999-2005 http://hdl.handle.net/10986/19901 |
| _version_ |
1764444021814460416 |
| spelling |
okr-10986-199012021-04-23T14:03:52Z Assessing the Impact of Infrastructure Quality on Firm Productivity in Africa : Cross-Country Comparisons Based on Investment Climate Surveys from 1999 to 2005 Escribano, Alvaro Guasch, J. Luis Pena, Jorge ADVERSE EFFECTS AFFORDABILITY OF INFRASTRUCTURE SERVICES AIR AIR TRANSPORT ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BENCHMARK BOOK VALUE BOTTLENECKS BUSINESS INDICATORS CAPITAL STOCK COMMUNICATIONS TECHNOLOGY COMPETITIVE MARKETS COMPETITIVE PRODUCTS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER PRICE INDEX CUSTOM CUSTOMER DEMANDS CUSTOMS CUSTOMS CLEARANCE DEFLATORS DEPRECIATION RATE DEVELOPMENT ASSISTANCE DRIVERS E-BUSINESSES E-MAIL ECONOMETRIC ANALYSIS ECONOMETRIC METHODOLOGY ECONOMETRIC RESULTS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMICS ELASTICITIES ELASTICITY ELECTRICITY ELECTRICITY GENERATORS ELECTRICITY SUPPLY EMPLOYMENT EQUIPMENT EXPECTED RETURNS EXPORT PERFORMANCE EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS FUEL FUNCTIONAL FORMS GDP GDP PER CAPITA GEOGRAPHICAL AREA GEOGRAPHICAL AREAS GLOBAL ECONOMY GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HUMAN CAPITAL ICT IMPACT OF TELECOMMUNICATIONS IMPERFECT INFORMATION INCOME LEVELS INEFFICIENCY INFORMATION TECHNOLOGY INFRASTRUCTURE COST INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROVISION INFRASTRUCTURE SECTOR INFRASTRUCTURE SERVICES INFRASTRUCTURE SPENDING INNOVATION INTERNATIONAL COMPARISONS INTERNATIONAL MARKETS INTERNATIONAL STANDARD INVENTORY INVESTMENT CLIMATE LABOR COSTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR PRODUCTIVITY LABOR RELATIONS LICENSE LICENSES MANUFACTURING MANUFACTURING INDUSTRY MARGINAL PRODUCTIVITY MARKET CONDITIONS MARKET SHARE MARKET SHARES MARKETING MISSING VALUES MONOPOLIES PER CAPITA INCOME PERFORMANCE MEASURES PERFORMANCE OF GOVERNMENT PERFORMANCES PHONE CONNECTION PHYSICAL INFRASTRUCTURE PORT INFRASTRUCTURE POWER PRIVATE CAPITAL PRIVATE INVESTMENTS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRODUCTION FUNCTION PRODUCTIVITY PUBLIC INVESTMENT PUBLIC PRIVATE INFRASTRUCTURE QUALITY OF TRANSPORTATION R&D RAILROAD RAILWAYS REAL WAGES REGRESSION ANALYSES REGRESSION ANALYSIS RESULT RESULTS ROADS SANITATION SENSITIVITY ANALYSIS SUPPLIERS TAX TAX INCENTIVES TELECOM TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TELEPHONE TELEPHONE LINES TOTAL FACTOR PRODUCTIVITY TRADE SERVICES TRANSACTION TRANSACTION COSTS TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES TRUE USES WAGES WATER INFRASTRUCTURE This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and information and communications technology (ICT). Microeconometric techniques to investment climate surveys (ICSs) of 26 African countries are carried out in different years during the period 2002 6, making country-specific evaluations of the impact of investment climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country the impact is evaluated based on 10 different productivity measures. Results are robust once controlled for observable fixed effects (red tape, corruption and crime, finance, innovation and labor skills, etc.) obtained from the ICSs. African countries are ranked according to several indices: per capita income, ease of doing business, firm perceptions of growth bottlenecks, and the concept of demeaned productivity (Olley and Pakes 1996). The countries are divided into two blocks: high-income-growth and low-income-growth. Infrastructure quality has a low impact on TFP in countries of the first block and a high (negative) impact in countries of the second. There is significant heterogeneity in the individual infrastructure elements affecting countries from both blocks. Poor-quality electricity provision affects mainly poor countries, whereas problems dealing with customs while importing or exporting affects mainly faster-growing countries. Losses from transport interruptions affect mainly slower-growing countries. Water outages affect mainly slower-growing countries. There is also some heterogeneity among countries in the infrastructure determinants of the allocative efficiency of African firms. 2014-09-02T14:24:50Z 2014-09-02T14:24:50Z 2010-01 http://documents.worldbank.org/curated/en/2010/01/11699361/assessing-impact-infrastructure-quality-firm-productivity-africa-cross-country-comparisons-based-investment-climate-surveys-1999-2005 http://hdl.handle.net/10986/19901 English en_US Policy Research Working Paper;No. 5191 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa |