Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence

Marie-Ange Véganzonès and Hoang Thanh Mai Nguyen

Post-Print from HAL

Abstract: Drawing on the World Bank Enterprise Surveys (WBES), we revisit the link between firm-level investment climate and productive performance for a panel of enterprises surveyed twice in time in 70 developing countries and 11 manufacturing industries. We take advantage of the time dimension available for an increasing number of countries to tackle the endogeneity issue stressed in previous studies. We also use pertinent econometric techniques to address other biases inherent in the data, measurement errors, missing observations, and multicollinearity in particular. Our results reinforce previous findings by validating, with a larger than usual sample of countries and industries, the importance of a larger set of environment variables. We show that infrastructure quality (Infra), information and communication technologies (ICT), skills and experience of the labor force (H), cost of and access to financing (Fin), security and political stability (CrimePol), competition (Comp) and government relation (Gov) contribute to firms and countries performances gap. The empirical analysis also illustrates that firms which choose an outward orientation have higher productivity level. Nevertheless, outward oriented enterprises are, at the same time, more sensitive to investment climate limitations. These findings have important policy implications by showing which dimensions of the business environment, in which industry, could help manufacturing firms to be more competitive in the present context of increasing globalization.

Keywords: Investment Climate; Outward Orientation; Total Factor Productivity; Manufacturing; Firm-level Data (search for similar items in EconPapers)
Date: 2018-06-04
References: Add references at CitEc
Citations:

Published in Global Conference on Business and Economics (GLOBE 2018), Jun 2018, Florida, United States

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence (2019)
Working Paper: Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence (2019)
Working Paper: Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence (2018)
Working Paper: Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence (2018)
Working Paper: Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence (2018)
Working Paper: Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence” (2018)
Working Paper: Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence (2017)
Working Paper: Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence (2017)
Working Paper: Investment Climate, Outward Orientation and Manufacturing Firms’ Productivity: New Empirical Evidence (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03049265

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().