C. Journal articles published externally
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These are journal articles by World Bank authors published externally.
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The Effects of Pollution and Business Environment on Firm Productivity in Africa
(Sage Publications, 2020) Soppelsa, Maria E. ; Lozano-Gracia, Nancy ; Xu, L. ColinIn this paper, we explore the links between city competitiveness and air pollution and business environment. Because competitive cities not only attract more productive firms but also facilitate their business, we choose to look at firm performance as a proxy for city competitiveness. We particularly focus on African firms because this region is developing fast, experiencing increasing pollution levels and the effects of agglomeration economies. We find two interesting results. First, the negative association between air pollution and firm performance can be seen at lower than expected levels of pollution. Second, the effects of capacity agglomeration on labor productivity growth are stronger compared to other regions. These findings suggest that cities in this region should address pollution issues soon, as they continue to grow fast and pollution levels becoming an increasing concern. -
Publication
Constraints or Complaints? Business Climate and Firm Performance Perceptions in Uganda
(Taylor and Francis, 2019) Mawejje, Joseph ; Sebudde, Rachel K.This paper identifies the business constraints that are most binding for firm performance. Using panel methods on novel quarterly Ugandan business climate data, we exploit perceived changes in business climate constraints to account for changes in firm performance. Not all identified constraints are binding for firm performance. Macroeconomic instability, demand stability, access to finance, corruption/bribery, and weather variability are found to be binding constraints. Firms’ expectations about future performance outcomes are associated with current perceptions about these constraints, alleviating endogeneity concerns to some extent. While taxation constraints are usually highly ranked, we do not find evidence linking them to firm performance. -
Publication
Decomposing the Labour Productivity Gap between Migrant-Owned and Native-Owned Firms in Sub-Saharan Africa
(Taylor and Francis, 2018-09-18) Islam, Asif ; Palacios Lopez, Amparo ; Amin, MohammadMigration studies have been primarily based on the movement of individuals from developing to developed economies, with a focus on the impact of migrants on host country wages. In this study we take a different angle by exploring the labor productivity of migrant-owned firms versus native-owned firms in 20 African economies using firm-level data. We find that labor productivity is 78 per cent higher in migrant-owned firms than native-owned firms. Using the Oaxaca-Blinder decomposition method we find that structural effects account for 80 per cent of the labor productivity gap. Returns to manager education largely explain the productivity advantage of migrant-owned firms over native-owned firms. Interactions with the government, access to finance, informality, and power outages are also considerable contributors to the labor productivity gap. -
Publication
Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition
(American Economic Association, 2017-08) McKenzie, DavidAlmost all firms in developing countries have fewer than ten workers, with a modal size of one. Are there potential high-growth entrepreneurs, and can public policy help identify them and facilitate their growth? A large-scale national business plan competition in Nigeria provides evidence on these questions. Random assignment of US$34 million in grants provided each winner with approximately US$50,000. Surveys tracking applicants over five years show that winning leads to greater firm entry, more survival, higher profits and sales, and higher employment, including increases of over 20 percentage points in the likelihood of a firm having ten or more workers. -
Publication
Governors Matter: A Comparative Study of State-Business Relations in Russia's Regions
(Wiley, 2017-04-06) Sharafutdinova, Gulnaz ; Steinbuks, JevgenijsThis study uses the latest 2011 round of the Business Environment and Enterprise Performance Survey for the Russian Federation to take a closer look at regional-level factors influencing the business environment in Russia. Specifically, the study explores the role of regional administrations and variables of administrative continuity and governor origin in shaping regional business environment. The findings reveal that regional businesses in Russia are (1) acutely anxious about administrative transitions (as expressed in gubernatorial replacements) and favor administrative continuity, and (2) favor government officials that are locally embedded. The analysis suggests that many localities in Russia have witnessed the emergence of mutually beneficial state-business arrangements that are inimical to economic competition. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions. http://olabout.wiley.com/WileyCDA/Section/id-820227.html -
Publication
Deregulation and Firm Investment: Evidence from the Dismantling of the License System in India
(Taylor and Francis, 2016-11-07) Kandilov, Ivan T. ; Leblebicioglu, Asli ; Manghnani, RuchitaWe analyse the impact of deregulatory reforms in India during the 1990s, which eliminated compulsory industrial licensing, on manufacturing firms’ investment decisions. We find an economically and statistically significant positive effect of delicensing on investment. We also show that firms in states with better credit conditions benefitted more from the removal of licences. Moreover, our analysis demonstrates that the increase in investment was predominantly driven by smaller firms.