How Can We Learn Whether Firm Policies are Working in Africa?: Challenges (and Solutions?) for Experiments and Structural Models
Firm productivity is low in African countries, prompting governments to try a number of active policies to improve it. Yet despite the millions of dollars spent on these policies, we are far from a situation where we know whether many of them are yielding the desired payoffs. This paper establishes...
Gespeichert in:
| Beteilige Person: | |
|---|---|
| Format: | Elektronisch E-Book |
| Sprache: | Englisch |
| Veröffentlicht: |
Washington, D.C
The World Bank
2011
|
| Links: | https://doi.org/10.1596/1813-9450-5632 |
| Zusammenfassung: | Firm productivity is low in African countries, prompting governments to try a number of active policies to improve it. Yet despite the millions of dollars spent on these policies, we are far from a situation where we know whether many of them are yielding the desired payoffs. This paper establishes some basic facts about the number and heterogeneity of firms in different sub-Saharan African countries and discusses their implications for experimental and structural approaches towards trying to estimate firm policy impacts. It shows that the typical firm program such as a matching grant scheme or business training program involves only 100 to 300 firms, which are often very heterogeneous in terms of employment and sales levels. As a result, standard experimental designs will lack any power to detect reasonable sized treatment impacts, while structural models which assume common production technologies and few missing markets will be ill-suited to capture the key constraints firms face. Nevertheless, the author suggests a way forward which involves focusing on a more homogeneous sub-sample of firms and collecting a lot more data on them than is typically collected |
| Umfang: | 1 Online-Ressource (26 p) |
| DOI: | 10.1596/1813-9450-5632 |
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| 520 | |a Firm productivity is low in African countries, prompting governments to try a number of active policies to improve it. Yet despite the millions of dollars spent on these policies, we are far from a situation where we know whether many of them are yielding the desired payoffs. This paper establishes some basic facts about the number and heterogeneity of firms in different sub-Saharan African countries and discusses their implications for experimental and structural approaches towards trying to estimate firm policy impacts. It shows that the typical firm program such as a matching grant scheme or business training program involves only 100 to 300 firms, which are often very heterogeneous in terms of employment and sales levels. As a result, standard experimental designs will lack any power to detect reasonable sized treatment impacts, while structural models which assume common production technologies and few missing markets will be ill-suited to capture the key constraints firms face. Nevertheless, the author suggests a way forward which involves focusing on a more homogeneous sub-sample of firms and collecting a lot more data on them than is typically collected | ||
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| indexdate | 2024-12-20T19:40:05Z |
| institution | BVB |
| language | English |
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| spellingShingle | McKenzie, David How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models |
| title | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models |
| title_auth | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models |
| title_exact_search | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models |
| title_full | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models David McKenzie |
| title_fullStr | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models David McKenzie |
| title_full_unstemmed | How Can We Learn Whether Firm Policies are Working in Africa? Challenges (and Solutions?) for Experiments and Structural Models David McKenzie |
| title_short | How Can We Learn Whether Firm Policies are Working in Africa? |
| title_sort | how can we learn whether firm policies are working in africa challenges and solutions for experiments and structural models |
| title_sub | Challenges (and Solutions?) for Experiments and Structural Models |
| url | https://doi.org/10.1596/1813-9450-5632 |
| work_keys_str_mv | AT mckenziedavid howcanwelearnwhetherfirmpoliciesareworkinginafricachallengesandsolutionsforexperimentsandstructuralmodels |