Stunted Growth: Why Don't African Firms Create More Jobs?

Vijaya Ramachandran, Leonardo Iacovone, Martin Schmidt
Content Type
Working Paper
Center for Global Development
Many countries in Africa suffer high rates of underemployment or low rates of productive employment; many also anticipate large numbers of people to enter the workforce in the near future. This paper asks the question: Are African firms creating fewer jobs than those located elsewhere? And, if so, why? One reason may be that weak business environments slow the growth of firms and distort the allocation of resources away from better-performing firms, hence reducing their potential for job creation.
Economics, Industrial Policy, International Trade and Finance, Markets, Fragile/Failed State
Political Geography
Africa, Israel