Business environment and comparative advantage in Africa: Evidence from the Investment Climate Data

摘要: This paper ties together the macroeconomic and microeconomic evidence on competitiveness of African manufacturing sectors. The conceptual framework is based newer theories that see evolution comparative advantage as influenced by business climate -- a key public good external economies between clusters firms entering in related Macroeconomic data from purchasing power parity (PPP) estimates confirms Africa high cost relative to its levels income productivity. finding compared with firm-level surveys undertaken for Investment Climate Assessments 2000-2004. These confirm pattern generally low productivity, also suggest importance indirect costs business-environment-related losses depressing productivity those other countries. There are differences countries, however, some showing stronger community better climate. Finally, adopts political-economy perspective prospects reform Africa's climate, considering attitudes fractured nature sectors indigenous, minority foreign investors. concludes discussion findings reforms boost diversification economies.