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

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dc.contributor.authorRamachandran, Vijaya
dc.contributor.authorIacovone, Leonardo
dc.contributor.authorSchmidt, Martin
dc.date.accessioned2014-02-05T19:56:15Z
dc.date.available2014-02-05T19:56:15Z
dc.date.issued2013-12
dc.description.abstractMany 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.identifierhttp://documents.worldbank.org/curated/en/2013/12/18662376/stunted-growth-don t-african-firms-create-more-jobs
dc.identifier.doi10.1596/1813-9450-6727
dc.identifier.urihttps://hdl.handle.net/10986/16943
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6727
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectBUSINESS CLIMATE
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS ENVIRONMENTS
dc.subjectBUSINESS SECTOR
dc.subjectCAPABILITIES
dc.subjectCAPITAL FORMATION
dc.subjectCOMPETITIVENESS
dc.subjectCOOPERATIVES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDRIVERS
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectELECTRICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectENTERPRISE SURVEYS
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURSHIP
dc.subjectENVIRONMENTS
dc.subjectESP
dc.subjectEXPANSION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFIRM SIZE
dc.subjectFIRMS
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT POLICY
dc.subjectGOVERNMENT REGULATION
dc.subjectGROWTH POTENTIAL
dc.subjectHIGH TRUST
dc.subjectHUMAN CAPITAL
dc.subjectINCOMPLETE CONTRACTS
dc.subjectINFORMATION SYSTEMS
dc.subjectINNOVATION
dc.subjectJOB CREATION
dc.subjectLABOR COSTS
dc.subjectLABOR PRODUCTIVITY
dc.subjectLEASING
dc.subjectLENDERS
dc.subjectLIMITED ACCESS
dc.subjectMANUFACTURING
dc.subjectMARKET ACCESS
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMISSING VALUES
dc.subjectMNE
dc.subjectNATIONAL INCOME
dc.subjectOPEN ACCESS
dc.subjectPERFORMANCE MEASURES
dc.subjectPOLICY ENVIRONMENT
dc.subjectPOLITICAL ECONOMY
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROPERTY RIGHTS
dc.subjectREGISTRIES
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectRETAINED EARNINGS
dc.subjectSIZE OF FIRM
dc.subjectSIZE OF FIRMS
dc.subjectSMALL BUSINESS
dc.subjectSMALL ENTERPRISES
dc.subjectSMALL FIRMS
dc.subjectSUPPLIERS
dc.subjectTERMS OF TRADE
dc.subjectTHEORETICAL MODELS
dc.subjectTHEORY OF THE FIRM
dc.subjectUNEMPLOYMENT
dc.subjectUNSKILLED LABOR
dc.subjectUNSKILLED WORKERS
dc.subjectUSES
dc.subjectWEB
dc.subjectWORKING CAPITAL
dc.titleStunted Growth : Why Don't African Firms Create More Jobs?en
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleStunted Growth: Why Don't African Firms Create More Jobs?
okr.date.disclosure2013-12-01
okr.date.doiregistration2025-04-10T10:10:26.455303Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/12/18662376/stunted-growth-don t-african-firms-create-more-jobs
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid678211468191960165
okr.identifier.doi10.1596/1813-9450-6727
okr.identifier.externaldocumentum000158349_20131216134913
okr.identifier.internaldocumentum18662376
okr.identifier.reportWPS6727
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/12/16/000158349_20131216134913/Rendered/PDF/WPS6727.pdfen
okr.region.administrativeAfrica
okr.region.geographicalAfrica
okr.topicFinance and Financial Sector Development::Microfinance
okr.topicSmall Scale Enterprise
okr.topicSocial Protections and Labor::Labor Policies
okr.topicPrivate Sector Development::E-Business
okr.topicEnvironmental Economics and Policies
okr.topicIndustry
okr.topicEnvironment
okr.unitInnovation, Technology and Entrepreneurship Global Practice, Financial and Private Sector Development
okr.volume1 of 1
relation.isAuthorOfPublication734ee1fb-8c6d-5f35-94cf-b5d89ace0d98
relation.isAuthorOfPublication.latestForDiscovery734ee1fb-8c6d-5f35-94cf-b5d89ace0d98
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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