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Improving business environment: a key to unlock investment: evidence from manufacturing firms in Senegal

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  • Siagne, Youssouha Sakrya

Abstract

This paper deals with the impact of poor business environment on Total Factor Productivity (TFP), output and investment of manufacturing firms in Senegal. A benchmark study coupled with results from the 2014 World Bank Enterprise Survey narrowed down the list of relevant constraints to doing business in Senegal. As a result, a Real Business Cycle model in a Small Open Economy is used to measure the impact of poor infrastructure , and tax burden and regulations . Results show that poor business environment has sizeable negative impact on output and investment which is a common feature of recent studies

Suggested Citation

  • Siagne, Youssouha Sakrya, 2020. "Improving business environment: a key to unlock investment: evidence from manufacturing firms in Senegal," MPRA Paper 115085, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115085
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    More about this item

    Keywords

    business environment; total factor productivity; real business cycles model;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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