Business environmental constraints for Egyptian firms
This paper evaluates the main obstacles that Egyptian enterprises face to do business in their country and investigates to what extent the constraints affect firm performance. Firm’s performance is measured as Total Factor Productivity (TFP), which is obtained using Levinsohn and Petrin (2003) methodology. Our analysis evaluates the effects of the different business indicators obtained from the World Bank Enterprise Survey using firm level data from manufacturing firms on TFP. A number of control variables commonly used in the empirical literature are also included in the model. To check the robustness of our result alternative measures of firm performance are used, namely total sales and the average number of workers. The main results indicate that access and cost to finance, tax rates, regulatory policy uncertainty, the price of land and basic infrastructures, such as access to water and electricity, are among the most relevant factors. These findings have important policy implications, in particular for policy makers and will help them decide what sort of specific actions can be taken to reduce the main obstacles and consequently to pave the way for manufacturing Egyptian firms to become more competitive.
|Date of creation:||Mar 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Plaza de la Victoria, 2 C.P. 28802, Alcalá de Henares|
Phone: (00 34) 91 885 52 25
Fax: (00 34) 91 885 52 21
Web page: http://www.iaes.es
More information through EDIRC
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.:
- Ilke Van Beveren, 2007.
"Total factor productivity estimation: A practical review,"
LICOS Discussion Papers
18207, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Ilke Van Beveren, 2012. "Total Factor Productivity Estimation: A Practical Review," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 98-128, 02.
- Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés, 2011.
"Big Constraints to Small Firms' Growth? Business Environment and Employment Growth across Firms,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 59(3), pages 609 - 647.
- Aterido, Reyes & Hallward-Driemeier, Mary & Pages, Carmen, 2009. "Big constraints to small firms'growth ? business environment and employment growth across firms," Policy Research Working Paper Series 5032, The World Bank.
- Patrick Plane & Marie-Ange Veganzones-Varoudakis & Tidiane Kinda, 2011.
"Firm productivity and investment climate in developing countries: how does Middle East and North Africa manufacturing perform?,"
- Tidiane Kinda & Patrick Plane & Marie‐Ange Véganzonès‐Varoudakis, 2011. "Firm Productivity And Investment Climate In Developing Countries: How Does Middle East And North Africa Manufacturing Perform?," The Developing Economies, Institute of Developing Economies, vol. 49(4), pages 429-462, December.
- Marie-Ange VEGANZONES-VAROUDAKIS & Patrick PLANE & Tidiane KINDA, 2011. "Firm Productivity and Investment Climate in Developing Countries: How Does Middle East and North Africa Manufacturing Perform?," Working Papers 201126, CERDI.
- Patrick Plane & Marie-Ange Veganzones & Tidiane Kinda, 2011. "Firm Productivity and Investment Climate in Developing Countries: How Does Middle East and North Africa Manufacturing Perform?," Working Papers halshs-00617575, HAL.
- Patrick Plane & Marie-Ange Veganzones & Tidiane Kinda, 2011. "Firm Productivity and Investment Climate in Developing Countries: How Does Middle East and North Africa Manufacturing Perform?," Working Papers halshs-00617574, HAL.
- De Loecker, Jan, 2007.
"Do exports generate higher productivity? Evidence from Slovenia,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 69-98, September.
- Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- T. Dinh, Hinh & Mavridis, Dimitris A. & Nguyen, Hoa B., 2010. "The binding constraint on firms'growth in developing countries," Policy Research Working Paper Series 5485, The World Bank.
- Patricia Augier & Marion Dovis & Michael Gasiorek, 2012. "The business environment and Moroccan firm productivity," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(2), pages 369-399, 04.
When requesting a correction, please mention this item's handle: RePEc:uae:sermed:17. 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: (Laura Suarez)
If references are entirely missing, you can add them using this form.