Firm Size Matters: Growth and Productivity Growth in African Manufacturing
Johannes Van Biesebroeck ()
Economic Development and Cultural Change, 2005, vol. 53, issue 3, pages 545-83
In a sample of manufacturing firms from nine sub-Saharan African countries, large firms are found to be extremely important. As in more developed economies, they achieve higher productivity levels and are more likely to survive. In contrast, the commonly found higher growth rates for small firms are not replicated in the African sample, and the distribution of firms changes very little over time. Firms are more likely to have started out large than to have grown to a large size. The labor market relocates workers toward the most productive firms, and this reinforces the importance of large firms for aggregate productivity growth. Formal credit institutions award most financing to large firms, and access to credit is positively correlated with productivity, even conditional on firm size.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (55) Track citations by RSS feed
Downloads: (external link)
Access to the online full text or PDF requires a subscription.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ucp:ecdecc:y:2005:v:53:i:3:p:545-83
Access Statistics for this article
More articles in Economic Development and Cultural Change from University of Chicago Press
Series data maintained by Journals Division ().