IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03058682.html
   My bibliography  Save this paper

Does Investment Climate Matter for Firm’s Technical Efficiency? An Application to Middle Eastern and North African Manufacturing

Author

Listed:
  • Marie-Ange Véganzonès-Varoudakis

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

  • Patrick Plane
  • Tidiane Kinda

Abstract

Drawing on the World Bank enterprise surveys, this paper shows that the investment climate (IC) is correlated with firms' technical efficiency (TE) in eight manufacturing industries of 22 developing countries. Essential aspects of the investment climate include the quality of infrastructure, the experience and education of the labor force, the cost of and access to financing, as well as different dimensions of government-business relations. The empirical analysis also illustrates that the deficient IC in many countries in the Middle East and North Africa (MENA) is associated with low TE. The exception is Morocco, and to some extent Saudi Arabia, where the IC and TE rank close to that of the most efficient economies of the empirical sample. The paper also highlights that industries more exposed to international competition, as well as small and medium domestic firms in some branches, exhibit a higher sensitivity to IC limitations.

Suggested Citation

  • Marie-Ange Véganzonès-Varoudakis & Patrick Plane & Tidiane Kinda, 2014. "Does Investment Climate Matter for Firm’s Technical Efficiency? An Application to Middle Eastern and North African Manufacturing," Post-Print hal-03058682, HAL.
  • Handle: RePEc:hal:journl:hal-03058682
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M.A. Véganzonès-Varoudakis & H. T. M. Nguyen, 2018. "Investment climate, outward orientation and manufacturing firm productivity: new empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 50(53), pages 5766-5794, November.
    2. Asif M. Islam & Silvia Muzi, 2022. "Does mobile money enable women-owned businesses to invest? Firm-level evidence from Sub-Saharan Africa," Small Business Economics, Springer, vol. 59(3), pages 1245-1271, October.
    3. Amr Hosny, 2018. "Firm Performance and their Perception of Political Instability in Egypt: Evidence from an Endogenous Treatment Regression Model," Journal of African Development, African Finance and Economic Association (AFEA), vol. 20(2), pages 61-68.
    4. Hosny Amr, 2017. "Political Stability, Firm Characteristics and Performance: Evidence from 6,083 Private Firms in the Middle East," Review of Middle East Economics and Finance, De Gruyter, vol. 13(1), pages 1-21, April.
    5. Hoang Thanh Mai NGUYEN & Marie-Ange VEGANZONES-VAROUDAKIS, 2017. "Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence," Working Papers 201717, CERDI.
    6. Hyland,Marie Caitriona & Islam,Asif Mohammed, 2021. "Gendered Laws, Informal Origins, and Subsequent Performance," Policy Research Working Paper Series 9766, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03058682. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.