Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence
This paper examines the determinants of the productivity of Nigerian firms, using three waves of Enterprise Surveys from 2007, 2009, and 2014 and 7,670 firms. The paper uses three alternative measures of productivity, which are found to be highly c...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/668501499886575291/Productivity-in-the-non-oil-sector-in-Nigeria-firm-level-evidence http://hdl.handle.net/10986/27648 |
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okr-10986-276482021-06-08T14:42:47Z Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence Herrera, Santiago Kouame, Wilfried PRODUCTIVITY LABOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY INVESTMENT CLIMATE CORRUPTION This paper examines the determinants of the productivity of Nigerian firms, using three waves of Enterprise Surveys from 2007, 2009, and 2014 and 7,670 firms. The paper uses three alternative measures of productivity, which are found to be highly correlated: labor productivity, value added per worker, and total factor productivity. The more notable trends in the data show: a rise in productivity, with the output of exporting firms decreasing; increasing concentration of production, reflected in the rise of the Herfindahl-Hirschman index by a factor of three; increasing costs of crime, power outages, lack of security, and bribery; significant heterogeneity of these costs along several dimensions, such as firm size, age, location, and the exporting or domestic nature of the market it serves. These costs are inversely related with investment. Regardless of the measure of productivity, its main determinants are the education of the worker, size of the firm, availability of credit, and business climate variables. When labor productivity is used, the stock of capital is also a major determinant of productivity. Within the investment climate variables, power outages and the corruption index are the more significant ones. Power outages are negatively associated with productivity. Bribery is positively related, supporting the "greasing the wheels" hypothesis of bribery as a factor that reduces transaction costs. The impact is nonlinear, as it decreases with firm size. The results also show a positive association between productivity and exporting, but the causality is reversed when the analysis controls for endogeneity: productivity is a weak determinant of the likelihood of a firm becoming an exporter. 2017-07-19T18:21:05Z 2017-07-19T18:21:05Z 2017-07 Working Paper http://documents.worldbank.org/curated/en/668501499886575291/Productivity-in-the-non-oil-sector-in-Nigeria-firm-level-evidence http://hdl.handle.net/10986/27648 English en_US Policy Research Working Paper;No. 8145 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Nigeria |
| 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 |
PRODUCTIVITY LABOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY INVESTMENT CLIMATE CORRUPTION |
| spellingShingle |
PRODUCTIVITY LABOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY INVESTMENT CLIMATE CORRUPTION Herrera, Santiago Kouame, Wilfried Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| geographic_facet |
Africa Nigeria |
| relation |
Policy Research Working Paper;No. 8145 |
| description |
This paper examines the determinants of
the productivity of Nigerian firms, using three waves of
Enterprise Surveys from 2007, 2009, and 2014 and 7,670
firms. The paper uses three alternative measures of
productivity, which are found to be highly correlated: labor
productivity, value added per worker, and total factor
productivity. The more notable trends in the data show: a
rise in productivity, with the output of exporting firms
decreasing; increasing concentration of production,
reflected in the rise of the Herfindahl-Hirschman index by a
factor of three; increasing costs of crime, power outages,
lack of security, and bribery; significant heterogeneity of
these costs along several dimensions, such as firm size,
age, location, and the exporting or domestic nature of the
market it serves. These costs are inversely related with
investment. Regardless of the measure of productivity, its
main determinants are the education of the worker, size of
the firm, availability of credit, and business climate
variables. When labor productivity is used, the stock of
capital is also a major determinant of productivity. Within
the investment climate variables, power outages and the
corruption index are the more significant ones. Power
outages are negatively associated with productivity. Bribery
is positively related, supporting the "greasing the
wheels" hypothesis of bribery as a factor that reduces
transaction costs. The impact is nonlinear, as it decreases
with firm size. The results also show a positive association
between productivity and exporting, but the causality is
reversed when the analysis controls for endogeneity:
productivity is a weak determinant of the likelihood of a
firm becoming an exporter. |
| format |
Working Paper |
| author |
Herrera, Santiago Kouame, Wilfried |
| author_facet |
Herrera, Santiago Kouame, Wilfried |
| author_sort |
Herrera, Santiago |
| title |
Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| title_short |
Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| title_full |
Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| title_fullStr |
Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| title_full_unstemmed |
Productivity in the Non-Oil Sector in Nigeria : Firm-Level Evidence |
| title_sort |
productivity in the non-oil sector in nigeria : firm-level evidence |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/668501499886575291/Productivity-in-the-non-oil-sector-in-Nigeria-firm-level-evidence http://hdl.handle.net/10986/27648 |
| _version_ |
1764465639813021696 |