STATE-BUSINESS RELATIONS, INVESTMENT CLIMATE REFORM AND FIRM PRODUCTIVITY IN SUB-SAHARAN AFRICA

2012 ◽  
Vol 25 (7) ◽  
pp. 912-935 ◽  
Author(s):  
Mahvash Saeed Qureshi ◽  
Dirk Willem te Velde
2020 ◽  
Vol 8 (04) ◽  
pp. 1706-1730
Author(s):  
Nyemb Pagbe Rémi Degourmond

This paper assesses the impact of investment climate quality on economic growth for a sample of 21 countries in Sub-Saharan Africa (SSA), over the period 1996-2014. The investment climate is measured simultaneously by individual components and composite indices, in order to capture both its global and specific effects, with a view to possibly identifying the most determining factors in the economic growth of SSA countries. In addition, in order to verify the robustness of our results, two composite indices of investment climate were constructed using the Principal Component Analysis method, with variables from two main databases (the World Governance Indicators database of World Bank and the International Country Risk Guide database).By using fixed and random effects models based on Hausman test results, we generally find that investment climate is a major determinant of economic growth in the countries of the SSA of the study sample. This result is valid regardless of the composite index or the individual component considered. Fight against corruption, protection of private property rights, efficiency of government, the quality of bureaucracy and regulation appear to be the most decisive components in accelerating economic growth for the sample of country considered.


2017 ◽  
Vol 24 (1) ◽  
pp. 105-118 ◽  
Author(s):  
Adan Guyo Shibia ◽  
Dulacha Galgallo Barako

Purpose The purpose of this paper is to investigate the effects of investment climate and firm-specific variables on the growth of micro and small enterprises (MSEs) in Kenya. Design/methodology/approach The paper utilized a cross-section survey data of 2,536 MSEs in Kenya. Using the sales growth as the dependent variable, the paper tests the hypotheses that investment climate variables – entrepreneur perception of fairness and affordability of the courts in dealing with commercial disputes, access to formal credit, connections to utilities, crime incidences; and firm-specific resources affect MSE growth. Findings Positive entrepreneur perception of the fairness and affordability of the courts, access to formal credit, connections to utilities, lower incidences of crime, entrepreneur education and experience positively affect MSE growth. Research limitations/implications Although the context of the study is Kenya, the study has relevance to other developing countries especially Sub-Saharan Africa due to institutional similarities. The paper, however, uses cross-sectional data, which unlike panel data, do not allow for establishing dynamic relationships. This could be a potential area for further research. Originality/value The paper is among the first to establish effects of entrepreneur perception on MSE growth with regards the court system in dealing with business disputes in terms of fairness, timeliness, affordability and enforcement. The paper also extends limited extant research on MSE growth constraints with regards to incidences of insecurity, access to bank credit, connections to utilities and internal resources.


Author(s):  
Joshua C. Nyirenda ◽  
Robert A. Cropf

EGovernance and eGovernment are critical tools for Good governance and economic development, and are therefore critical for Highly Indebted Poor Countries, a majority of which are in Sub-Saharan Africa. This paper reviews literature in order to discuss the prospects of eGovernance and eGovernment in Sub Saharan Countries, and chooses the nation of Zambia as an in-depth case study. Issues of investment climate, market structure, infrastructural capacity, social contexts and political and cultural resistance factors are identified as impediments but also key components (if well understood and tackled) for effective initiation and implementation of eGovernance and eGovernment projects.


2019 ◽  
Vol 11 (1) ◽  
pp. 75-90
Author(s):  
Kofi Kamasa ◽  
George Adu ◽  
Eric Fosu Oteng-Abayie

Purpose The purpose of this paper is to find the effect of quality of tax administration on firm productivity in Sub-Saharan Africa (SSA). Also, the paper investigates whether the effect of quality of tax administration on firm productivity varies with respect to firms of different ages and sizes. Design/methodology/approach The paper uses the World Bank Enterprise Survey data for 6,718 firms across 40 countries in SSA. By employing the least square method, the estimations are robust since country and industry heterogeneity are controlled, as well as other covariates that affect firm productivity such as capital, technology, business environment, infrastructure and firm characteristics. Findings Results of the paper reveal that productivity of firms reduces with poor quality of tax administration. With positive and significant interaction term coefficient between smaller firms and quality of tax administration, the findings also reveal that smaller firms do benefit in the presence of poor quality of tax administration than larger firms. Originality/value The study contributes to policy by providing empirical evidence on the impact that quality of tax administration has on firm productivity. Empirically, the paper is also the first to assess the effect of tax administration quality on firm productivity with sole emphasis on SSA (to the best of the authors’ knowledge after review of literature). The paper suggests reforms and improvement in tax administration so as to reduce compliance burden and improve productivity.


2017 ◽  
Vol 19 (2) ◽  
pp. 210-226 ◽  
Author(s):  
Godfred Alufar Bokpin ◽  
Charles Ackah ◽  
Mark Edem Kunawotor

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