Assessing the impact of infrastructure quality on firm productivity in Africa: Cross‐country comparisons based on investment climate surveys from 1999 to 2005

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dc.contributor.author Escribano, Álvaro
dc.contributor.author Guasch, J. Luis
dc.contributor.author Pena, Jorge
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2009-12-16T10:09:17Z
dc.date.available 2009-12-16T10:09:17Z
dc.date.issued 2009-11
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/6101
dc.description.abstract This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and information and communications technology (ICT). We apply microeconometric techniques to investment climate surveys (ICSs) of 26 African countries carried out in different years during the period 2002–6, making country‐specific evaluations of the impact of investment climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country we evaluated this impact based on 10 different productivity measures. Results are robust once we control for observable fixed effects (red tape, corruption and crime, finance, innovation and labor skills, etc.) obtained from the ICSs. We ranked African countries according to several indices: per capita income, ease of doing business, firm perceptions of growth bottlenecks, and the concept of demeaned productivity (Olley and Pakes 1996). We divided countries into two blocks: high‐incomegrowth and low‐income‐growth. Infrastructure quality has a low impact on TFP in countries of the first block and a high (negative) impact in countries of the second. We found heterogeneity in the individual infrastructure elements affecting countries from both blocks. Poor‐quality electricity provision affects mainly poor countries, whereas problems dealing with customs while importing or exporting affects mainly faster‐growing countries. Losses from transport interruptions affect mainly slower‐growing countries. Water outages affect mainly slower‐growing countries. There is also some heterogeneity among countries in the infrastructure determinants of the allocative efficiency of African firms.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics
dc.relation.ispartofseries 09-49
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Africa
dc.subject.other Infrastructure
dc.subject.other Total factor productivity
dc.subject.other Investment climate
dc.subject.other Competitiveness
dc.title Assessing the impact of infrastructure quality on firm productivity in Africa: Cross‐country comparisons based on investment climate surveys from 1999 to 2005
dc.type workingPaper
dc.subject.jel D21
dc.subject.jel D24
dc.subject.jel D61
dc.subject.jel L60
dc.subject.jel O55
dc.subject.jel O57
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we098649
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