Bigsten, A. Collier, P. Dercon, S. Gauthier, B. Gunning, J.W. Isaksson, A. Oduro, A. Oostendorp, R. Pattillo, C. Soderbom, M. Sylvain, M. Teal, F. Zeufack, A.
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Firm-level data for the manufacturing sector in Africa, presented in this paper, showa very low levels of investment. A positive effect from profis 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.
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Paper provided by Centre for the Study of African Economies, University of Oxford in its series Working Papers Series with number
97-11.
Length: 23 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:oxesaf:97-11
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Find related papers by JEL classification: D21 - Microeconomics - - Production and Organizations - - - Firm Behavior 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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