Investment in Africa's manufacturing sector: A four country panel data analysis
AbstractFirm-level data for the manufacturing sector in Africa, presented in this paper, shows very low levels of investment. A positive effect from profits onto investment is identified in a flexible accelerator specification of the investment function controlling for firm fixed effects. There is evidence that this effect is confined to smaller firms. A comparison with other studies shows that, for such firms, the profit effect is much smaller in Africa than in other countries. Reasons for the relative insensitivity of investment to profits in African firms are suggested.
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Bibliographic InfoPaper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1997-11.
Date of creation: 1997
Date of revision:
firm investment; liquidity constraints; African manufacturing;
Other versions of this item:
- Bigsten, Arne, et al, 1999. " Investment in Africa's Manufacturing Sector: A Four Country Panel Data Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 489-512, November.
- Francis Teal & Stefan Dercon & MÃƒÂ¥ns SÃƒÂ¶derbom, 1997. "Investment in Africa`s manufacturing sector: a four-country panel data analysis," Economics Series Working Papers WPS/1997-11, University of Oxford, Department of Economics.
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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