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Book Performance of Manufacturing Firms in Africa

Download or read book Performance of Manufacturing Firms in Africa written by Hinh T. Dinh and published by World Bank Publications. This book was released on 2012-08-21 with total page 239 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance of Manufacturing Firms in Africa: An Empirical Analysis sheds light on the characteristics of formal and informal manufacturing firms in Africa by comparing these firms with firms in other regions. Drawing on two data sources, the authors find that there is a very low share of manufacturing in GDP in Africa and in African exports. Most African manufacturing firms are informal, perhaps because the enforcement of registration and licensing regulations is not strict. These firms are also smaller than firms in other regions and few export. Labor productivity is low in Africa relative to other regions, but this may be because of the more challenging environment—with the lack of physical infrastructure, the heavy burden of business regulation, and other issues. However, after accounting for these differences, the authors find that firms in Sub-Saharan Africa appear more, not less, productive than firms elsewhere. This analysis suggests that improving the business environment might allow firms to enhance their performance. However, given the pervasive distortions in the business environment and the limited resources at the disposal of most African countries, Africa cannot and should not wait until the business environment becomes healthier before growing a more viable manufacturing sector. Performance of Manufacturing Firms in Africa: An Empirical Analysis shows that binding constraints vary by country, by sector, and by firm size. Therefore, countries should identify the constraints in the most promising sectors and adopt policies designed specifically to remove these constraints. The evidence in this book overwhelmingly dispels the false notion of Africa’s inability to compete globally in manufacturing goods. This book will be of interest to economists, policy makers, and government officials working to improve manufacturing firm performance in Africa.

Book Manufacturing Transformation

Download or read book Manufacturing Transformation written by Carol Newman and published by Oxford University Press. This book was released on 2016 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A study prepared by the United Nations University World Institute for Development Economics Research (UNU-WIDER)."

Book Light Manufacturing in Africa

Download or read book Light Manufacturing in Africa written by Hinh T. Dinh and published by World Bank Publications. This book was released on 2012-02-24 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines how light manufacturing can offer a viable solution for Sub-Saharan Africa's need for structural transformation and productive job creation, given its potential competitiveness based on low wage costs and an abundance of natural resources that supply raw materials needed for industries. Based on five different analytical tools and data sources, the book examines in detail the binding constraints in each of the subsectors relevant for Sub-Saharan Africa (SSA): apparel, leather goods, metal products, agribusiness, and wood products. Ethiopia is used as an example, with Vietnam as a comparator and China as a benchmark, and with insights from Tanzania and Zambia used to draw out lessons more broadly for SSA. The book recommends a program of focused policies to exploit Africa's latent comparative advantage in a particular group of light manufacturing industries - especially leather goods, garments, and agricultural processing. These industries hold the prospect of initiating rapid, substantial, and potentially self-propelling waves of rising output, employment, productivity, and exports that can push countries like Ethiopia on a path of structural change of the sort recently achieved in both China and Vietnam. The timing for these initiatives is very appropriate as China's comparative advantage in these areas is diminishing due to steep cost increases associated with rising wages and non-wage labor costs, escalating land prices, and mounting regulatory costs. Five features of this book distinguish it from previous studies. First, the detailed work on light manufacturing at the subsector and product levels in five countries provide in-depth cost comparisons between Asia and Africa that can be used as a framework for future studies. Second, the book uses a wide array of quantitative and qualitative techniques to identify key constraints to enterprises and to evaluate firm performance differences across countries. Third, the findings that firm constraints vary by country, sector, and firm size led to a focused approach to identifying constraints and combining market-based measures and select government intervention to remove them. Fourth, the solution to light manufacturing problems cuts across many sectors: solving the manufacturing inputs problem requires solving specific issues in agriculture, education, and infrastructure. African countries cannot afford to wait until all the problems across sectors are resolved. Fifth, the book draws on experiences and solutions from other developing countries to inform its recommendations. This book will be very valuable to African policy makers, professional economists, and anyone interested in the economic development, industrialization, and structural transformation of developing countries.

Book Economic transformation in Africa from the bottom up  Evidence from Tanzania

Download or read book Economic transformation in Africa from the bottom up Evidence from Tanzania written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2017-02-03 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: At roughly 4 percent per year, labor productivity in Tanzania has grown more rapidly over the past 14 years than at any other time in recent history. Employment growth has also been strong, keeping up with population growth at roughly 2.5 percent per year; the bulk of employment growth (90 percent) has been in the nonagricultural sector. However, the vast majority of this nonagricultural employment growth has occurred in informal sector. Using Tanzania’s first nationally representative survey of micro-, small-, and medium-sized enterprises, this paper shows that firms in the informal sector contributed roughly half a percentage point to economywide labor productivity growth in Tanzania between 2002 and 2012. However, virtually all of the labor productivity growth contributed by informal firms came from a small subset of firms called the “in-between firms.” This paper considers attributes of the in-between firms that could be used for targeting financial and business services to firms with the potential to grow. This paper finds two salient characteristics of in-between firms that might lend themselves to targeting—their owners are more likely to keep written accounts and more likely to keep their savings in formal bank accounts.

Book Industries Without Smokestacks

Download or read book Industries Without Smokestacks written by Richard S. Newfarmer and published by Oxford University Press. This book was released on 2018 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: A study prepared by the United Nations University World Institute for Development Economics Research (UNU-WIDER)

Book Industrial Clusters and Micro and Small Enterprises in Africa

Download or read book Industrial Clusters and Micro and Small Enterprises in Africa written by World Bank and published by World Bank Publications. This book was released on 2010-12-30 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: The World Bank, Japan International Cooperation Agency (JICA) Research Institute, and the Foundation for Advanced Studies on International Development (FASID), in collaboration with researchers affiliated with the African Economic Research Consortium (AERC), recently conducted a study on Africa s domestic enterprises to improve the understanding of the constraints micro and small enterprises in Africa face in improving productivity and expanding their markets. In Africa, there are stark performance gaps between domestically owned enterprises and foreign-owned enterprises in terms of sales performance, productivity, and ability to reach distant markets. Among others, size appears to be a dominant factor in explaining the gap. Against this background, the study analyzes how naturally formed industrial clusters concentrations of enterprises engaged in same or closely related industrial activities in specific locations could potentially mitigate constraints Africa s micro and small enterprises face and enhance their business performance. The study is one of the first comprehensive quantitative inquiries on industrial clusters in Africa. The analysis specifically focuses on the role of spontaneously grown clusters of light manufacturing industries based on a set of original case studies of industrial clusters conducted for this research project. One of the key findings from the case studies was that cluster-based micro and small enterprises are performing better than similar micro and small enterprises outside of the clusters in terms of sales performance and ability to reach distant markets. Market access is a leading reason for cluster-based enterprises to choose their current locations. However, cluster-based enterprises face another set of unique growth constraints. By the very nature of spontaneous agglomera tion, new enterprises continue to flow to the clusters seeking the profit opportunities and better access to markets at such locations. The result can be intense competition in addition to increased congestion. Space constraints often impede growth within clusters. The lack of alternative locations available for industrial activities in the same cities, generic infrastructure bottlenecks, and unclear zoning policies and their unpredictable changes limit firms location choices and constrain their mobility. While competition should improve efficiency, lack of capacity among those competing cluster-based enterprises to invest and innovate does not generate growth out of the competition. The vast majority of naturally formed clusters of light manufacturing industries in Africa are still at a survival level, where agglomeration externalities are only limited to expand quantity but not quality as we observe in more advanced innovation-oriented clusters in elsewhere in the world. Existing studies on such natural industrial clusters in Africa have found that the lack of managerial skills among entrepreneurs running micro and small enterprises is a major constraint for innovation and growth in the clusters. As a part of this study, pilot managerial skills training programs were conducted in two industrial clusters on an experimental basis, where a group of randomly selected entrepreneurs within the clusters were given three-week long crush course of based management such as bookkeeping, marketing, business planning, and production management. The impact evaluation of the experiments showed significant positive impacts of the training programs on value added and gross profits of enterprises. Raising the current survival-type industrial clusters, which have been formed as a coping mechanism to weak investment climate, into more dynamic innovating clusters will be an important avenue for fostering growth of micro and small enterprises in Africa. While national efforts to improve investment climate and investments in human capital are undoubtedly important, there could be more targeted policies to be formulated, in complementing general policies, to support growth of micro and small domestic enterprises using existing industrial clusters as a natural springboard for their growth. In that context, the study discusses the merit of cluster-based managerial human capital development to build steps toward more innovation-oriented clusters, the importance of sound spatial planning policy, particularly at the local level in the context of urban planning, the need to expand market access and economic linkages for industrial clusters including regional integration and linkages with large enterprises.

Book The African Manufacturing Firm

Download or read book The African Manufacturing Firm written by Ata Mazaheri and published by Routledge. This book was released on 2005-11-02 with total page 712 pages. Available in PDF, EPUB and Kindle. Book excerpt: The African manufacturing sector continues to face many problems as it struggles to progress from its presently underdeveloped state. If the countries that make up Africa are ever to raise the living standards of the vast majority of its population to a more acceptable level, then the economic growth that would result from an enlarged and improved manufacturing sector may hold an important key. The book provides a useful source of greater understanding of African manufacturing firms and the perplexing lack of widespread industrial growth during the post-colonial decades. The comprehensive coverage includes such themes as: *the size and distribution of firms in Africa *entrepreneurship, labour and the regulatory and business environments in Africa *the dynamic problem of growth and investment of firms Any reader wanting to understand the economic problems of Africa will need to read this book, and any student, academic or policy-maker working in the areas of development and industrial economics will find it to be a most useful guide.

Book African Small and Medium Enterprises  Networks  and Manufacturing Performance

Download or read book African Small and Medium Enterprises Networks and Manufacturing Performance written by Tyler Biggs and published by World Bank Publications. This book was released on 2006 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This paper examines the role of private support institutions in determining small and medium enterprise (SME) growth and performance in Sub-Saharan Africa (SSA). It finds that SMEs in SSA get around market failures and lack of formal institutions by creating private governance systems in the form of long-term business relationships and tight, ethnically-based, business networks. There are important links between these informal governance institutions and SME performance. Networks raise the performance of "insiders" and, in the sparse business environments of the SSA region, have attendant negative consequences for market participation of "outsiders," such as indigenous African SMEs. This is indicated through the determinants of access to supplier credit. Policy interventions will be needed to improve the platform for relation-based governance mechanisms and to address the exclusionary effects of tight networks. "

Book Africa   s manufacturing puzzle  Evidence from Tanzanian and Ethiopian firms

Download or read book Africa s manufacturing puzzle Evidence from Tanzanian and Ethiopian firms written by Diao, Xinshen and published by Intl Food Policy Res Inst. This book was released on 2021-05-06 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.

Book Manufacturing Transformation  Comparative Studies of Industrial Development in Africa and Emerging Asia

Download or read book Manufacturing Transformation Comparative Studies of Industrial Development in Africa and Emerging Asia written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: While it is possible for economies to grow based on abundant land or natural resources, more often structural change--the shift of resources from low-productivity to high-productivity sectors--is the key driver of economic growth. Structural transformation is vital for Africa. The region's much-lauded growth turnaround since 1995 has been the result of fewer economic policy mistakes, robust commodity prices, and new discoveries of natural resources. At the same time, Africa's economic structure has changed very little. Primary commodities and natural resources still account for the bulk of exports. Industry is most often the leading driver of structural transformation. Africa's experience with industrialization over the past thirty years has been disappointing. In 2010, sub-Saharan Africa's average share of manufacturing value added in GDP was 10 per cent, unchanged from the 1970s. In fact the share of medium- and high-tech goods in manufacturing production has been falling since the mid-1990s. Per capita manufactured exports are less than 10 per cent of the developing country average. Consequently, Africa's industrial transformation has yet to take place. This book presents results of comparative country-based research that sought to answer a seemingly simple but puzzling question: why is there so little industry in Africa? It brings together detailed country case studies of industrial policies and industrialization outcomes in eleven countries, conducted by teams of national researchers in partnership with experts on industrial development. It provides the most comprehensive description and analysis available of the contemporary industrialization experience in low-income Africa.

Book Africa   s Development Dynamics 2021 Digital Transformation for Quality Jobs

Download or read book Africa s Development Dynamics 2021 Digital Transformation for Quality Jobs written by African Union Commission and published by OECD Publishing. This book was released on 2021-01-19 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt: Africa’s Development Dynamics uses lessons learned in the continent’s five regions – Central, East, North, Southern and West Africa – to develop policy recommendations and share good practices. Drawing on the most recent statistics, this analysis of development dynamics attempts to help African leaders reach the targets of the African Union’s Agenda 2063 at all levels: continental, regional, national and local.

Book What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa

Download or read book What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa written by Arne Bigsten and published by World Bank Publications. This book was released on 2005 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In the early 1990s the World Bank launched the Regional Program on Enterprise Development in several African countries, a key component of which was the collection of manufacturing firm-level data. In this paper the authors review the research based on the data sets generated by these and subsequent firm surveys in Africa, with a special view to what they think are the most important policy implications. The authors survey the research on the African business environment, focusing on market size, risk, access to credit, labor, and infrastructure. They cover the research on how firms choose to organize themselves and how firms do business. They review the research on firm performance, including firm growth, investment and technology acquisition, and exports. They conclude with an extended discussion of the policy lessons. "--World Bank web site.

Book Why Small Firms Stay Small

Download or read book Why Small Firms Stay Small written by Dorothy McCormick and published by . This book was released on 1992 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Structural Aspects of Manufacturing in Sub Saharan Africa

Download or read book Structural Aspects of Manufacturing in Sub Saharan Africa written by Tyler Biggs and published by World Bank Publications. This book was released on 1996-01-01 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: Urban Management Programme Paper No. 20. Reviews the specific actions that municipalities and city governments may take in contributing to urban poverty reduction. The paper highlights example of issues, options, and constraints that urban governments must address in fighting poverty. It focuses on municipalities and other city-level government entities as a critical institutional level of intervention. Other language editions available: French--Stock No. 13814 (ISBN 0-8213-3814-5); Spanish--Stock No. 13813 (ISBN 0-8213-3813-7).

Book Africa s Manufacturing Puzzle

Download or read book Africa s Manufacturing Puzzle written by Xinshen Diao and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.

Book Gender and Economic Growth in Kenya

Download or read book Gender and Economic Growth in Kenya written by and published by World Bank Publications. This book was released on 2007 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the legal, administrative, and regulatory barriers that are preventing women in Kenya from contributing fully to the Kenyan economy. Building on the 2004 FIAS Improving the Commercial Legal Framework and Removing Administrative and Regulatory Barriers to Investment report, this study looks at the bureaucratic barriers facing women in Kenya through a gender lens.