Publication:
Stunted Growth : Why Don't African Firms Create More Jobs?

dc.contributor.author Iacovone, Leonardo
dc.contributor.author Ramachandran, Vijaya
dc.contributor.author Schmidt, Martin
dc.date.accessioned 2014-02-05T19:56:15Z
dc.date.available 2014-02-05T19:56:15Z
dc.date.issued 2013-12
dc.description.abstract Many countries in Africa suffer high rates of underemployment or low rates of productive employment; many also anticipate large numbers of people to enter the workforce in the near future. This paper asks the question: Are African firms creating fewer jobs than those located elsewhere? And, if so, why? One reason may be that weak business environments slow the growth of firms and distort the allocation of resources away from better-performing firms, hence reducing their potential for job creation. The paper uses data from 41,000 firms across 119 countries to examine the drivers of firm growth, with a special focus on African firms. African firms, at any age, tend to be 20-24 percent smaller than firms in other regions of the world. The poor business environment, driven by limited access to finance, and the lack of availability of electricity, land, and unskilled labor have some value in explaining this difference. Foreign ownership, the export status of the firm, and the size of the market are also significant determinants of firm size. However, even after controlling for the business environment and for characteristics of firms and markets, about 60 percent of the size gap between African and non-African firms remains unexplained. en
dc.identifier http://documents.worldbank.org/curated/en/2013/12/18662376/stunted-growth-don t-african-firms-create-more-jobs
dc.identifier.uri http://hdl.handle.net/10986/16943
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 6727
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject BUSINESS CLIMATE
dc.subject BUSINESS ENVIRONMENT
dc.subject BUSINESS ENVIRONMENTS
dc.subject BUSINESS SECTOR
dc.subject CAPABILITIES
dc.subject CAPITAL FORMATION
dc.subject COMPETITIVENESS
dc.subject COOPERATIVES
dc.subject DEVELOPMENT ECONOMICS
dc.subject DRIVERS
dc.subject ECONOMIC THEORY
dc.subject ECONOMICS
dc.subject ELECTRICITY
dc.subject EMPIRICAL EVIDENCE
dc.subject ENTERPRISE SURVEYS
dc.subject ENTREPRENEUR
dc.subject ENTREPRENEURSHIP
dc.subject ENVIRONMENTS
dc.subject ESP
dc.subject EXPANSION
dc.subject FINANCIAL INSTITUTIONS
dc.subject FIRM SIZE
dc.subject FIRMS
dc.subject GOVERNMENT EXPENDITURES
dc.subject GOVERNMENT POLICY
dc.subject GOVERNMENT REGULATION
dc.subject GROWTH POTENTIAL
dc.subject HIGH TRUST
dc.subject HUMAN CAPITAL
dc.subject INCOMPLETE CONTRACTS
dc.subject INFORMATION SYSTEMS
dc.subject INNOVATION
dc.subject JOB CREATION
dc.subject LABOR COSTS
dc.subject LABOR PRODUCTIVITY
dc.subject LEASING
dc.subject LENDERS
dc.subject LIMITED ACCESS
dc.subject MANUFACTURING
dc.subject MARKET ACCESS
dc.subject MICROFINANCE
dc.subject MICROFINANCE INSTITUTIONS
dc.subject MISSING VALUES
dc.subject MNE
dc.subject NATIONAL INCOME
dc.subject OPEN ACCESS
dc.subject PERFORMANCE MEASURES
dc.subject POLICY ENVIRONMENT
dc.subject POLITICAL ECONOMY
dc.subject PRIVATE SECTOR
dc.subject PRIVATE SECTOR DEVELOPMENT
dc.subject PROPERTY RIGHTS
dc.subject REGISTRIES
dc.subject RESULT
dc.subject RESULTS
dc.subject RETAINED EARNINGS
dc.subject SIZE OF FIRM
dc.subject SIZE OF FIRMS
dc.subject SMALL BUSINESS
dc.subject SMALL ENTERPRISES
dc.subject SMALL FIRMS
dc.subject SUPPLIERS
dc.subject TERMS OF TRADE
dc.subject THEORETICAL MODELS
dc.subject THEORY OF THE FIRM
dc.subject UNEMPLOYMENT
dc.subject UNSKILLED LABOR
dc.subject UNSKILLED WORKERS
dc.subject USES
dc.subject WEB
dc.subject WORKING CAPITAL
dc.title Stunted Growth : Why Don't African Firms Create More Jobs? en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.date.disclosure 2013-12-01
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2013/12/18662376/stunted-growth-don t-african-firms-create-more-jobs
okr.globalpractice Social Protection and Labor
okr.globalpractice Environment and Natural Resources
okr.globalpractice Finance and Markets
okr.globalpractice Transport and ICT
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-6727
okr.identifier.externaldocumentum 000158349_20131216134913
okr.identifier.internaldocumentum 18662376
okr.identifier.report WPS6727
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/12/16/000158349_20131216134913/Rendered/PDF/WPS6727.pdf en
okr.region.administrative Africa
okr.region.geographical Africa
okr.topic Finance and Financial Sector Development :: Microfinance
okr.topic Small Scale Enterprise
okr.topic Social Protections and Labor :: Labor Policies
okr.topic Private Sector Development :: E-Business
okr.topic Environmental Economics and Policies
okr.topic Industry
okr.topic Environment
okr.unit Innovation, Technology and Entrepreneurship Global Practice, Financial and Private Sector Development
okr.volume 1 of 1
relation.isAuthorOfPublication 734ee1fb-8c6d-5f35-94cf-b5d89ace0d98
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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