IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Impact of Unconducive Macro-Business Environment on Productive Efficiency and Capacity Utilization among SMEs in Liberia

  • Aloyce R. Kaliba

    ()

    (College of Business, Southern University and A&M College, USA)

  • Ashagre A. Yigletu

    (College of Business, Southern University and A&M College, USA)

  • Wede E. Brownell

    (College of Business and Public Administration, University of Liberia)

  • Edna G. Johnny

    ()

    (College of Business and Public Administration, University of Liberia)

  • Tuwehi C. Ziadee

    (College of Business and Public Administration, University of Liberia)

Registered author(s):

    An accommodating macro business environment is one that encourages firms to operate efficiently. Such conditions strengthen incentives for firms to be innovative and to increase productive efficiency. Unconducive macro business environment acts as a negative input to the production process. We use the 2008/09 Liberia¡¯s Small Business Enterprise Survey data to estimate firm level score of unconducive macro business environment using a two parameter Rasch Model. The estimated scores were incorporated in an output-semi-oriented radial Data Envelopment Analysis (DEA) model as undesirable inputs. The DEA model was used to estimate technical efficiency and capacity utilization of each enterprise. Estimated technical efficiency and revenue gap were regressed on all inputs using a Tobit model. The results indicate that increase in unconducive macro business environment decreased capacity utilization. To promote the role of small and medium enterprise in sustainable economic development, Liberia needs to improve enterprise¡¯s access to financial services, increase supply of electricity, and combat corruption by public officials.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.bapress.ca/Journal-6/Impact%20of%20Unconducive%20Macro-Business%20Environment%20on%20Productive%20Efficiency%20and%20Capacity%20Utilization%20among%20SMEs%20in%20Liberia.pdf
    Download Restriction: no

    Article provided by Better Advances Press, Canada in its journal Review of Economics & Finance.

    Volume (Year): 2 (2012)
    Issue (Month): (February)
    Pages: 97-110

    as
    in new window

    Handle: RePEc:bap:journl:120108
    Contact details of provider: Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada
    Phone: +1-647-728-3961
    Web page: http://www.bapress.ca

    Order Information: Postal: 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada
    Email:


    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Aghion, Philippe & Blundell, Richard & Griffith, Rachel & Howitt, Peter & Prantl, Susanne, 2006. "The effects of entry on incumbent innovation and productivity," Discussion Papers, Research Unit: Competition and Innovation SP II 2006-18, Social Science Research Center Berlin (WZB).
    2. Berger, Allen N & Udell, Gregory F, 1995. "Relationship Lending and Lines of Credit in Small Firm Finance," The Journal of Business, University of Chicago Press, vol. 68(3), pages 351-81, July.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bap:journl:120108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bill)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.