Firm Productivity and Infrastructure Costs in East Africa

  title={Firm Productivity and Infrastructure Costs in East Africa},
  author={Atsushi Iimi and Richard Martin Humphrey and Sevara Melibaeva},
  journal={World Bank Policy Research Working Paper Series},
Infrastructure is an important driving force for economic growth. It reduces trade and transaction costs and stimulates the productivity of the economy. Africa has been lagging behind in the global manufacturing market. Among others, infrastructure is an important constraint in many African countries. Using firm-level data for East Africa, the paper reexamines the relationship between firm performance and infrastructure. It is shown that labor costs are by far the most important to stimulate… Expand
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