Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing
Drawing on the World Bank Investment Climate Assessment surveys, this paper investigates the relationship between firm-level technical efficiency and the investment climate for 22 developing economies and eight manufacturing industries. The authors...
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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_20090319085313 http://hdl.handle.net/10986/4064 |
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okr-10986-4064 |
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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 |
| topic |
ACCESS TO CREDIT ADVERSE EFFECT AFFILIATED ORGANIZATIONS ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY AVERAGE WAGE BARRIERS TO ENTRY BEST PRACTICE BUREAUCRACY BUSINESS CLIMATE CALCULATION CALCULATIONS CAPITALISM COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS COMPETITIVE MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTRIBUTION CORPORATION COST OF LABOR CREDIT LINE CURRENT MARKET RATE DEPENDANT DEVELOPMENT ECONOMICS DIVERSIFICATION ECONOMETRICS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS ELASTICITY EXCHANGE RATE EXCHANGE RATES EXPORTS EXTERNAL SHOCKS EXTERNALITIES FACTOR MARKETS FACTORS OF PRODUCTION FINANCIAL CONSTRAINTS FINANCIAL ENVIRONMENT FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GENERAL PUBLIC GOOD INVESTMENT CLIMATE GOVERNMENT REGULATIONS GROSS VALUE HUMAN CAPITAL INCOME INCOMES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INEFFICIENCY INNOVATION INSURANCE INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT INVESTMENT CLIMATE ASSESSMENTS INVESTMENT CLIMATE CONSTRAINTS INVESTMENT OPPORTUNITIES INVESTMENT PERFORMANCES INVESTMENT PROJECTS JOB CREATION LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LESS DEVELOPED COUNTRIES LEVEL OF CONFIDENCE LEVEL OF EDUCATION MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MEDIUM ENTERPRISES NATURAL RESOURCES OPTIMIZATION OUTPUTS PERFECT COMPETITION PERMANENT WORKERS POLITICAL ECONOMY POOR INVESTMENT POSITIVE EXTERNALITIES PRICE TAKERS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PROFITABILITY PROFITABLE INVESTMENT PROPERTY RIGHTS PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT QUESTIONNAIRE REGULATORY FRAMEWORK SALARIES SALES SKILLED LABOR SMALL BUSINESSES SPECIALIZATION SUPPLIERS TAX TAX RATE TAXATION TELECOMMUNICATIONS TOTAL COST TOTAL FACTOR PRODUCTIVITY TRADE POLICY UNEMPLOYMENT UNSKILLED WORKERS VALUE ADDED WAGES WORK FORCE WORLD MARKET WORLD MARKETS WORTH |
| spellingShingle |
ACCESS TO CREDIT ADVERSE EFFECT AFFILIATED ORGANIZATIONS ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY AVERAGE WAGE BARRIERS TO ENTRY BEST PRACTICE BUREAUCRACY BUSINESS CLIMATE CALCULATION CALCULATIONS CAPITALISM COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS COMPETITIVE MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTRIBUTION CORPORATION COST OF LABOR CREDIT LINE CURRENT MARKET RATE DEPENDANT DEVELOPMENT ECONOMICS DIVERSIFICATION ECONOMETRICS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS ELASTICITY EXCHANGE RATE EXCHANGE RATES EXPORTS EXTERNAL SHOCKS EXTERNALITIES FACTOR MARKETS FACTORS OF PRODUCTION FINANCIAL CONSTRAINTS FINANCIAL ENVIRONMENT FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GENERAL PUBLIC GOOD INVESTMENT CLIMATE GOVERNMENT REGULATIONS GROSS VALUE HUMAN CAPITAL INCOME INCOMES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INEFFICIENCY INNOVATION INSURANCE INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT INVESTMENT CLIMATE ASSESSMENTS INVESTMENT CLIMATE CONSTRAINTS INVESTMENT OPPORTUNITIES INVESTMENT PERFORMANCES INVESTMENT PROJECTS JOB CREATION LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LESS DEVELOPED COUNTRIES LEVEL OF CONFIDENCE LEVEL OF EDUCATION MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MEDIUM ENTERPRISES NATURAL RESOURCES OPTIMIZATION OUTPUTS PERFECT COMPETITION PERMANENT WORKERS POLITICAL ECONOMY POOR INVESTMENT POSITIVE EXTERNALITIES PRICE TAKERS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PROFITABILITY PROFITABLE INVESTMENT PROPERTY RIGHTS PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT QUESTIONNAIRE REGULATORY FRAMEWORK SALARIES SALES SKILLED LABOR SMALL BUSINESSES SPECIALIZATION SUPPLIERS TAX TAX RATE TAXATION TELECOMMUNICATIONS TOTAL COST TOTAL FACTOR PRODUCTIVITY TRADE POLICY UNEMPLOYMENT UNSKILLED WORKERS VALUE ADDED WAGES WORK FORCE WORLD MARKET WORLD MARKETS WORTH Kinda, Tidiane Plane, Patrick Veganzones-Varoudakis, Marie-Ange Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| geographic_facet |
Middle East and North Africa Middle East and North Africa Middle East and North Africa |
| relation |
Policy Research working paper ; no. WPS 4869 |
| description |
Drawing on the World Bank Investment
Climate Assessment surveys, this paper investigates the
relationship between firm-level technical efficiency and the
investment climate for 22 developing economies and eight
manufacturing industries. The authors first propose three
measures of firms' productive performance: labor
productivity, total factor productivity, and technical
efficiency. They show that, on average, enterprises in the
Middle East and North Africa have performed poorly compared
with other countries in the sample. The exception is
Morocco, whose various measures of firm-level productivity
rank close to the ones of the most productive economies. The
analysis also reveals that the competitiveness of countries
in the region has been handicapped by high unit labor cost,
compared with main competitors like China and India. The
empirical results show then? that the investment climate
matters for firms' productive performance. This is true
(depending on the industry) for the quality of various
infrastructure, the experience and education level of the
labor force, the cost of and access to financing, as well as
different dimensions of the government-business relation.
The analysis reveals that some industries, more exposed to
international competition, are more sensitive to investment
climate deficiencies. For some industries, this is also true
for small and medium domestic enterprises that do not have
the possibility to influence their investment climate or
choose their location. These findings bear clear policy
implications by showing that increasing firms' size and
improving the investment climate (in particular of small and
medium firms and industries more exposed to international
competition) could constitute a powerful means of industrial
development and competitiveness, in the Middle East and
North Africa region in particular. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kinda, Tidiane Plane, Patrick Veganzones-Varoudakis, Marie-Ange |
| author_facet |
Kinda, Tidiane Plane, Patrick Veganzones-Varoudakis, Marie-Ange |
| author_sort |
Kinda, Tidiane |
| title |
Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| title_short |
Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| title_full |
Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| title_fullStr |
Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| title_full_unstemmed |
Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing |
| title_sort |
firms’ productive performance and the investment climate in developing economies : an application to mena manufacturing |
| 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_20090319085313 http://hdl.handle.net/10986/4064 |
| _version_ |
1764389754135117824 |
| spelling |
okr-10986-40642021-04-23T14:02:15Z Firms’ Productive Performance and the Investment Climate in Developing Economies : An Application to MENA Manufacturing Kinda, Tidiane Plane, Patrick Veganzones-Varoudakis, Marie-Ange ACCESS TO CREDIT ADVERSE EFFECT AFFILIATED ORGANIZATIONS ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY AVERAGE WAGE BARRIERS TO ENTRY BEST PRACTICE BUREAUCRACY BUSINESS CLIMATE CALCULATION CALCULATIONS CAPITALISM COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS COMPARATIVE ECONOMICS COMPETITIVE MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONTRIBUTION CORPORATION COST OF LABOR CREDIT LINE CURRENT MARKET RATE DEPENDANT DEVELOPMENT ECONOMICS DIVERSIFICATION ECONOMETRICS ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMICS ELASTICITY EXCHANGE RATE EXCHANGE RATES EXPORTS EXTERNAL SHOCKS EXTERNALITIES FACTOR MARKETS FACTORS OF PRODUCTION FINANCIAL CONSTRAINTS FINANCIAL ENVIRONMENT FINANCIAL SECTOR FINANCIAL SYSTEM FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GENERAL PUBLIC GOOD INVESTMENT CLIMATE GOVERNMENT REGULATIONS GROSS VALUE HUMAN CAPITAL INCOME INCOMES INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIALIZATION INEFFICIENCY INNOVATION INSURANCE INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCE INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT INVESTMENT CLIMATE ASSESSMENTS INVESTMENT CLIMATE CONSTRAINTS INVESTMENT OPPORTUNITIES INVESTMENT PERFORMANCES INVESTMENT PROJECTS JOB CREATION LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LABOR REGULATIONS LABOR RELATIONS LESS DEVELOPED COUNTRIES LEVEL OF CONFIDENCE LEVEL OF EDUCATION MACROECONOMICS MARGINAL COSTS MARGINAL PRODUCTIVITY MEDIUM ENTERPRISES NATURAL RESOURCES OPTIMIZATION OUTPUTS PERFECT COMPETITION PERMANENT WORKERS POLITICAL ECONOMY POOR INVESTMENT POSITIVE EXTERNALITIES PRICE TAKERS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTIVITY PROFITABILITY PROFITABLE INVESTMENT PROPERTY RIGHTS PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INVESTMENT QUESTIONNAIRE REGULATORY FRAMEWORK SALARIES SALES SKILLED LABOR SMALL BUSINESSES SPECIALIZATION SUPPLIERS TAX TAX RATE TAXATION TELECOMMUNICATIONS TOTAL COST TOTAL FACTOR PRODUCTIVITY TRADE POLICY UNEMPLOYMENT UNSKILLED WORKERS VALUE ADDED WAGES WORK FORCE WORLD MARKET WORLD MARKETS WORTH Drawing on the World Bank Investment Climate Assessment surveys, this paper investigates the relationship between firm-level technical efficiency and the investment climate for 22 developing economies and eight manufacturing industries. The authors first propose three measures of firms' productive performance: labor productivity, total factor productivity, and technical efficiency. They show that, on average, enterprises in the Middle East and North Africa have performed poorly compared with other countries in the sample. The exception is Morocco, whose various measures of firm-level productivity rank close to the ones of the most productive economies. The analysis also reveals that the competitiveness of countries in the region has been handicapped by high unit labor cost, compared with main competitors like China and India. The empirical results show then? that the investment climate matters for firms' productive performance. This is true (depending on the industry) for the quality of various infrastructure, the experience and education level of the labor force, the cost of and access to financing, as well as different dimensions of the government-business relation. The analysis reveals that some industries, more exposed to international competition, are more sensitive to investment climate deficiencies. For some industries, this is also true for small and medium domestic enterprises that do not have the possibility to influence their investment climate or choose their location. These findings bear clear policy implications by showing that increasing firms' size and improving the investment climate (in particular of small and medium firms and industries more exposed to international competition) could constitute a powerful means of industrial development and competitiveness, in the Middle East and North Africa region in particular. 2012-03-19T19:09:20Z 2012-03-19T19:09:20Z 2009-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090319085313 http://hdl.handle.net/10986/4064 English Policy Research working paper ; no. WPS 4869 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East and North Africa Middle East and North Africa |