Firm-Level Productivity and Technical Efficiency in MENA Manufacturing Industry: The Role of the Investment Climate
This paper investigates the relationship between firm-level productivity and investment climate (IC) for a large number of countries (23) and manufacturing industries (8). We first propose three measures of firms' productive performances: Labor Productivity (LP), Total Factor Productivity (TFP), and Technical Efficiency (TE). We reveal that enterprises in MENA perform in average poorly, compared to other countries of the sample. The exception is Morocco, whose various measures of firm-level productivity rank close to the ones of the most productive countries. We show at the same time that firms' competitiveness in MENA is handicapped by high Unit Labor Cost, compared to main competitors like China and India. The empirical analysis also reveals that the investment climate matters for firms productive performances. This is true (depending on the industry) for the quality of a large set of infrastructures, the experience and level of education of the labor force, the cost and access to financing, as well as to a lower extent, different dimensions of the government-business relation. These findings bear important policy implication by showing which dimension of the investment climate could help manufacturing firms in MENA to be more competitive on the world market.
|Date of creation:||17 Jan 2011|
|Date of revision:|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00556700|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- Bernard Yeung & Kathy S. He & Randall Morck, 2004.
"Corporate Stability and Economic Growth,"
Econometric Society 2004 North American Winter Meetings
84, Econometric Society.
- He, Kathy S. & Morck, Randall & Yeung, Bernard, 2003. "Corporate Stability and Economic Growth," CEI Working Paper Series 2003-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
- Kathy S. He & Randall Morck & Bernard Yeung, 2003. "Corporate Stability and Economic Growth," William Davidson Institute Working Papers Series 553, William Davidson Institute at the University of Michigan.
- Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2005. "Investment Climate and Firm Performance in Developing Economies," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 1-31, October.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002.
"Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development,"
NBER Working Papers
9305, National Bureau of Economic Research, Inc.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, 06.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Zvi Griliches & Jacques Mairesse, 1995.
"Production Functions: The Search for Identification,"
Harvard Institute of Economic Research Working Papers
1719, Harvard - Institute of Economic Research.
- Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
- Z, Griliches & Jacques Mairesse, 1997. "Production Functions : The Search for Identification," Working Papers 97-30, Centre de Recherche en Economie et Statistique.
- Escribano, Alvaro & Guasch, J. Luis, 2005. "Assessing the impact of the investment climate on productivity using firm-level data : methodology and the cases of Guatemala, Honduras, and Nicaragua," Policy Research Working Paper Series 3621, The World Bank.
- McMillan, John, 2004.
"A Flexible Economy? Entrepreneurship and Productivity in New Zealand,"
CEPR Discussion Papers
4614, C.E.P.R. Discussion Papers.
- John McMillan, 2004. "A Flexible Economy? Entrepreneurship and Productivity in New Zealand," Discussion Papers 03-032, Stanford Institute for Economic Policy Research.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
- John McMillan, 1998. "Managing Economic Change: Lessons from New Zealand," The World Economy, Wiley Blackwell, vol. 21(6), pages 827-843, 08.
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00556700. 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: (CCSD)
If references are entirely missing, you can add them using this form.