Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data

16 Pages Posted: 20 Apr 2016

See all articles by Jens Matthias Arnold

Jens Matthias Arnold

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Gaia Narciso

Trinity College Dublin

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2006

Abstract

The authors investigate the relationship between the productivity of African manufacturing firms and their access to services inputs. They use data from the World Bank Enterprise Survey for over 1,000 firms in 10 Sub-Saharan African countries to calculate the total factor productivity of firms. The Enterprise Surveys also contain unique measures of firms' access to communications, electricity, and financial services. The availability of these measures at the firm level, both as subjective and objective indicators, allows the authors to exploit the variation in services performance at the subnational regional level. Furthermore, by using the regional variation in services performance, they are also able to address concerns about the possible endogeneity of the services variables. The results show a significant and positive relationship between firm productivity and service performance in all three services sectors analyzed. The authors thus provide support for the argument that improvements in services industries contribute to enhancing the performance of downstream economic activities, and thus are an essential element of a strategy for promoting growth and reducing poverty.

Keywords: Economic Theory & Research, Education for the Knowledge Economy, Rural Communications, Commodities, Urban Economics

Suggested Citation

Arnold, Jens Matthias and Mattoo, Aaditya and Narciso, Gaia, Services Inputs and Firm Productivity in Sub-Saharan Africa: Evidence from Firm-Level Data (November 1, 2006). World Bank Policy Research Working Paper No. 4048, Available at SSRN: https://ssrn.com/abstract=940514

Jens Matthias Arnold (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Aaditya Mattoo

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
United States
202-458-8047 (Phone)
202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

Gaia Narciso

Trinity College Dublin ( email )

Dublin
Ireland

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