Publication:
What Matters to African Firms? The Relevance of Perceptions Data

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dc.contributor.authorGelb, Alan
dc.contributor.authorRamachandran, Vijaya
dc.contributor.authorShah, Manju Kedia
dc.contributor.authorTurner, Ginger
dc.date.accessioned2012-06-08T17:11:15Z
dc.date.available2012-06-08T17:11:15Z
dc.date.issued2007-12
dc.description.abstractCan perceptions data help us understand investment climate constraints facing the private sector? Or do firms simply complain about everything? In this paper, the authors provide a picture of how firms' views on constraints differ across countries in Sub-Saharan Africa. Using the World Bank's Enterprise Surveys database, they find that reported constraints reflect country characteristics and vary systematically by level of income-the most elemental constraints to doing business (power, access to finance, ability to plan ahead) appear to be most binding at low levels of income. As countries develop and these elemental constraints are relaxed, governance-related constraints become more problematic. As countries move further up the income scale and the state becomes more capable, labor regulation is perceived to be more of a problem-business is just one among several important constituencies. The authors also consider whether firm-level characteristics-such as size, ownership, exporter status, and firms' own experience-affect firms' views on the severity of constraints. They find that, net of country and sector fixed effects and firm characteristics, firms' views do reflect their experience as evidenced by responses to other questions in surveys. The results suggest that there are both country-level and firm-level variations in the investment climate. Turning to the concept of "binding constraints," the Enterprise Surveys do not generally suggest one single binding constraint facing firms in difficult business climates. However, there do appear to be groups of constraints that matter more at different income levels, with a few elemental constraints being especially important at low levels and a few regulatory constraints at high levels, but a difficult range of governance-related constraints at intermediate levels. Adjusting to a constraint does not mean that firms then do not recognize it-for example, generator-owning firms are not distinguishable from other firms when ranking electricity as a constraint. Overall, firms do appear to discriminate between constraints in a reasonable way. Their views can provide a useful first step in the business-government consultative process and help in prioritizing more specific behavioral analysis and policy reforms.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/12/8884382/matters-african-firms-relevance-perceptions-data
dc.identifier.doi10.1596/1813-9450-4446
dc.identifier.urihttps://hdl.handle.net/10986/7542
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4446
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTING
dc.subjectBINDING CONSTRAINT
dc.subjectBINDING CONSTRAINTS
dc.subjectBRIBE
dc.subjectBRIBES
dc.subjectBUSINESS CLIMATE
dc.subjectBUSINESS CLIMATES
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectBUSINESS PLANS
dc.subjectCALCULATIONS
dc.subjectCHECKS
dc.subjectCIVIL SOCIETY
dc.subjectCOLLATERAL
dc.subjectCOMPETITORS
dc.subjectCONSULTATIVE PROCESS
dc.subjectCONSUMER
dc.subjectCORRUPTION
dc.subjectCOST OF FINANCE
dc.subjectCOUNTRY CHARACTERISTICS
dc.subjectCOUNTRY DUMMIES
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCOUNTRY-LEVEL INDICATORS
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT MARKET
dc.subjectCREDIT RATINGS
dc.subjectCRIME
dc.subjectCUSTOMS CLEARANCE
dc.subjectCUSTOMS CLEARANCES
dc.subjectDEVELOPING COUNTRY
dc.subjectDISCRIMINATION
dc.subjectDOMESTIC CREDIT
dc.subjectEARNINGS
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectENTERPRISE SURVEYS
dc.subjectENTREPRENEURS
dc.subjectETHNIC GROUPS
dc.subjectEXCHANGE RATES
dc.subjectEXPANSION
dc.subjectEXPATRIATES
dc.subjectEXPENDITURES
dc.subjectEXPOSURE
dc.subjectFINANCE ACCESS
dc.subjectFINANCE CORPORATION
dc.subjectFINANCE COST
dc.subjectFINANCIAL ACCESS
dc.subjectFINANCIAL DEPTH
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL STATEMENTS
dc.subjectFIRM GROWTH
dc.subjectFIRM PERFORMANCE
dc.subjectFIRM SIZE
dc.subjectFIXED INVESTMENT
dc.subjectFOREIGN FIRMS
dc.subjectGOVERNANCE INDICATOR
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNMENT EFFECTIVENESS
dc.subjectGROWTH RATES
dc.subjectHIGH INTEREST RATES
dc.subjectIMPEDIMENTS TO BUSINESS
dc.subjectINCOME
dc.subjectINCOME GROUP
dc.subjectINCOME GROUPS
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOME RANGE
dc.subjectINDIVIDUAL FIRM
dc.subjectINDIVIDUAL FIRMS
dc.subjectINDUSTRIAL COUNTRY
dc.subjectINSTITUTIONAL ENVIRONMENT
dc.subjectINSTITUTIONAL INVESTOR
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCE
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT CLIMATES
dc.subjectINVESTOR PROTECTION
dc.subjectLARGE FIRMS
dc.subjectLEVEL OF CONFIDENCE
dc.subjectLEVEL OF EDUCATION
dc.subjectLICENSING
dc.subjectLOAN
dc.subjectLOW INCOME
dc.subjectLOW-INCOME
dc.subjectLOW-INCOME COUNTRIES
dc.subjectLOW-INCOME COUNTRY
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC STABILITY
dc.subjectMEASUREMENT ERROR
dc.subjectMEASUREMENT ERRORS
dc.subjectMEASURING GOVERNANCE
dc.subjectMEDIUM ENTERPRISES
dc.subjectMULTINATIONALS
dc.subjectNEW BUSINESS
dc.subjectOVERDRAFT
dc.subjectOVERDRAFTS
dc.subjectPER CAPITA INCOME
dc.subjectPERSONAL VALUES
dc.subjectPOLITICAL INSTABILITY
dc.subjectPOOR GOVERNANCE
dc.subjectPOWER OUTAGES
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROBABILITY
dc.subjectPRODUCTIVITY
dc.subjectREGULATORS
dc.subjectREGULATORY CONSTRAINTS
dc.subjectREGULATORY REFORMS
dc.subjectRENTS
dc.subjectREVERSE CAUSALITY
dc.subjectSALES
dc.subjectSALES GROWTH
dc.subjectSERVICE DELIVERY
dc.subjectSIZE OF FIRM
dc.subjectSKILL SHORTAGES
dc.subjectSKILLED WORKER
dc.subjectSKILLED WORKERS
dc.subjectSKILLS SHORTAGES
dc.subjectSMALL BUSINESS
dc.subjectSMALL FIRMS
dc.subjectSMALLER FIRMS
dc.subjectSME
dc.subjectSTATE CAPTURE
dc.subjectSUB-SAHARAN AFRICA
dc.subjectSUBJECTIVE DATA
dc.subjectSUBJECTIVE RATINGS
dc.subjectTAX
dc.subjectTAX RATES
dc.subjectTAX SYSTEM
dc.subjectTAXATION
dc.subjectTRADE UNIONS
dc.subjectUNION
dc.subjectVALUABLE
dc.subjectVOLATILITY
dc.subjectWAGES
dc.subjectWORTH
dc.subjectMicrodata Set
dc.titleWhat Matters to African Firms? The Relevance of Perceptions Dataen
dspace.entity.typePublication
okr.crossref.titleWhat Matters to African Firms? The Relevance of Perceptions Data
okr.date.doiregistration2025-04-10T10:44:04.783274Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/12/8884382/matters-african-firms-relevance-perceptions-data
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid980061468010497193
okr.identifier.doi10.1596/1813-9450-4446
okr.identifier.externaldocumentum000158349_20071214152644
okr.identifier.internaldocumentum8884382
okr.identifier.reportWPS4446
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/12/14/000158349_20071214152644/Rendered/PDF/wps4446.pdfen
okr.region.administrativeAfrica
okr.relation.associateddatasethttp://microdata.worldbank.org/index.php/catalog/464
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicPrivate Sector Development::Emerging Markets
okr.topicGovernance::Governance Indicators
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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