Investment in Africa’s Manufacturing Sector: a Four Country Panel Data Analysis.

Journal article

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 relat...

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Authors: Bigsten, A; Collier, P; Dercon, S; Gauthier, B; Gunning, J

• Publisher: Blackwell Publishing
• Journal: Oxford Bulletin of Economics and Statistics
• Volume: 61
• Issue: 4
• Pages: 489 - 512
• Publication date: 1999-01-01
• DOI: 10.1111/1468-0084.00140
• ISSN: 0305-9049
• Language: English