Investment in Africa's manufacturing sector: A four country panel data analysis

Arne Bigsten (), Paul Collier, Stefan Dercon, Bernard Gauthier (), Jan Willem Gunning, Anders Isaksson, Abena Oduro, Remco Oostendorp, Catherine Pattillo, Mans Soderbom, M. Sylvain, Francis Teal and Albert Zeufack ()

No 1997-11, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Firm-level data for the manufacturing sector in Africa, presented in this paper, shows very low levels of investment. A positive effect from profits onto investment is identified in a flexible accelerator specification of the investment function controlling for firm fixed effects. There is evidence that this effect is confined to smaller firms. A comparison with other studies shows that, for such firms, the profit effect is much smaller in Africa than in other countries. Reasons for the relative insensitivity of investment to profits in African firms are suggested.

Keywords: firm investment; liquidity constraints; African manufacturing (search for similar items in EconPapers)
JEL-codes: D21 O12 O55 (search for similar items in EconPapers)
Date: 1997
References: View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Journal Article: Investment in Africa's Manufacturing Sector: A Four Country Panel Data Analysis (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:csa:wpaper:1997-11

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