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Firm Productivity and Investment Climate in Developing Countries: How Does Middle East and North Africa Manufacturing Perform?

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  • Marie-Ange VEGANZONES-VAROUDAKIS

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

  • Patrick PLANE

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

  • Tidiane KINDA

    (Centre d'Etudes et de Recherches sur le Développement International)

Abstract

Firm productive performances in five Middle East and North African (MENA) economies and eight manufacturing industries are compared to those in 17 other developing countries. Although the broad picture hides some heterogeneity, enterprises in MENA often performed inadequately compared to MENA status of middle-income economies, with the exception of Morocco and, to some extent, Saudi Arabia. Firm competitiveness is a more constant constraint, with a unit labor cost higher than in most competitor countries, as well as investment climate (IC) deficiencies. The empirical analysis also points out how IC matters for firm productivity through the quality of infrastructure, the experience and education of the labor force, the cost and access to financing, and different dimensions of the government-business relationship. These findings bear important policy implications by showing which dimensions of the IC, in which industry, could help manufacturing in MENA to be more competitive in the globalization context.

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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201126.

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Length: 35
Date of creation: 2011
Date of revision:
Handle: RePEc:cdi:wpaper:1282

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Keywords: Manufacturing firms; productivity; investment climate; developing countries; Middle East and North Africa (MENA);

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Cited by:
  1. Tidiane Kinda, 2014. "The Quest for Non-Resource-Based FDI: Do Taxes Matter?," IMF Working Papers 14/15, International Monetary Fund.
  2. María Dolores Parra & Inmaculada Martínez-Zarzoso & Celestino Suarez-Burguet, 2014. "Business environmental constraints for Egyptian firms," SERMED 2014 Conference Papers p17, Instituto Universitario de Análisis Económico y Social.

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