Competitiveness of SME in RMG industry of South Asia- A case study of Bangladesh

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Publisher : Lulu.com
ISBN 13 : 1105803953
Total Pages : 117 pages
Book Rating : 4.1/5 (58 download)

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Book Synopsis Competitiveness of SME in RMG industry of South Asia- A case study of Bangladesh by : Faisal Kabir

Download or read book Competitiveness of SME in RMG industry of South Asia- A case study of Bangladesh written by Faisal Kabir and published by Lulu.com. This book was released on 2012-05-26 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: An overview of SME in RMG industry of South Asia to develop strategic awareness. Bangladesh has been an example of rapid success in RMG business. Mainly SME operation in various level of supply chain of RMG is the area of focus. Operation excellence is the foundation of RMG industry in Bangladesh. Marketing initiative and strategies should be streamlined along with low cost and labour advantages.Integration of operation and marketing would be providing sustainable value chain process. It is important to realize whatever customer is willing to pay is the value they want to buy. Sustainable business process mush be capable of generating value for different customers.Strategic implication in establishing sustainability in RMG industry requires to bring operational excellence and marketing strategy together to get the best out of competitive advantage of RMG industry in Bangladesh.

Marketing Practices in Developing Economy

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Publisher : PHI Learning Pvt. Ltd.
ISBN 13 : 8120337824
Total Pages : 316 pages
Book Rating : 4.1/5 (23 download)

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Book Synopsis Marketing Practices in Developing Economy by : Ruby Roy Dholakia

Download or read book Marketing Practices in Developing Economy written by Ruby Roy Dholakia and published by PHI Learning Pvt. Ltd.. This book was released on 2009 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: This comprehensive book has been written with the explicit objective of increasing the contextual knowledge regarding marketing organizations, problems and practices in South Asia. Divided into seven sections, this book focuses on the marketing perspective of South Asia and its future with the help of the cases. This book covers macro topics like how to develop a market and marketing institutions, as well as micro topics like branding and advertising strategies faced by the organizations operating in competitive and resource-challenged environments. While the problems and challenges described in each case reflect a situation unique to the organization, it also describes issues common to many developing countries. Each case has been written by authors with extensive academic and/or business experience in the region. The book adopts a problem-solving approach through the analysis of case studies that can be used by undergraduate and postgraduate students of management at college and university levels. It is equally beneficial for practising managers and marketing professionals.

Finance and Growth of SMEs in South Asia

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Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)

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Book Synopsis Finance and Growth of SMEs in South Asia by :

Download or read book Finance and Growth of SMEs in South Asia written by and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Productivity and Innovation in SMEs

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Publisher : Routledge
ISBN 13 : 0429950292
Total Pages : 110 pages
Book Rating : 4.4/5 (299 download)

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Book Synopsis Productivity and Innovation in SMEs by : Azad Bali

Download or read book Productivity and Innovation in SMEs written by Azad Bali and published by Routledge. This book was released on 2018-10-26 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyses the determining factors behind productivity and innovation amongst Small and Medium Enterprises (SMEs) in Singapore, and within the context of South East Asia, in order to offer recommendations for increasing productivity and aiding economic growth. SME firms are an influential driver of economic growth in advanced world economies like the USA, Germany, Japan and South Korea. Throughout the 2000s, Singapore experienced a decline in economic growth which was linked to decreasing productivity in its SMEs. The decline triggered a transformational policy by a Government intent on forging a ‘high skill–high productivity’ future. Given substantial evidence that low productivity growth occurred in sectors where immigrants dominated the workforce, the seeds of recovery focused on improving productivity and innovation amongst SMEs in those sectors. Hence, this book investigates the factors determining productivity amongst SMEs across the manufacturing sector. It utilises personal interviews with global experts and CEOs, combined with primary data collected from a major international Delphi survey, and interviews with 215 SME owners and managers in Singapore. This data helps us to better understand how these productivity-enhancing factors can be used to increase performance amongst SMEs. By investigating the nature and process of total factor productivity in Singapore’s SMEs, this book tells the policy story behind the revolution. To provide a comparative analysis, Singapore’s story is placed within a South East Asian context. The unfolding narrative contains important lessons for policy makers and industry globally, as they assess the strategic choices available to them for improving productivity and innovation. This book will be of great interest to students and scholars of innovation and productivity, as well as economic development officers, government policy advisors, SME business managers and sustainable businesses.

Toward New Sources of Competitiveness in Bangladesh

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Publisher : World Bank Publications
ISBN 13 : 1464806489
Total Pages : 165 pages
Book Rating : 4.4/5 (648 download)

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Book Synopsis Toward New Sources of Competitiveness in Bangladesh by : Sanjay Kathuria

Download or read book Toward New Sources of Competitiveness in Bangladesh written by Sanjay Kathuria and published by World Bank Publications. This book was released on 2015-10-20 with total page 165 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bangladesh's ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government's reform efforts.

Strengthening Competitiveness In Bangladesh—Thematic Assessment

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Publisher : World Bank Publications
ISBN 13 : 1464808996
Total Pages : 353 pages
Book Rating : 4.4/5 (648 download)

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Book Synopsis Strengthening Competitiveness In Bangladesh—Thematic Assessment by : Sanjay Kathuria

Download or read book Strengthening Competitiveness In Bangladesh—Thematic Assessment written by Sanjay Kathuria and published by World Bank Publications. This book was released on 2016-07-25 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is volume 2 of a three-volume publication on Bangladesh’s trade prospects. Bangladesh’s ambition is to build on its very solid growth and poverty reduction achievements, and accelerate growth to become a middle income country by 2021, and share prosperity more widely amongst its citizens. This includes one of its greatest development challenges: to provide gainful employment to the over 2 million people that will join the labor force each year over the next decade. Moreover, only 54.1 million of its 94 million working age people are employed. Bangladesh needs to use its labor endowment even more intensively to increase growth and, in turn, to absorb the incoming labor. The Diagnostic Trade Integration Study identifies the following actions centered around four pillars to sustain and accelerate export growth: (1) breaking into new markets through a) better trade logistics to reduce delivery lags ; as world markets become more competitive and newer products demand shorter lead times, to generate new sources of competitiveness and thereby enable market diversification; and b) better exploitation of regional trading opportunities in nearby growing and dynamic markets, especially East and South Asia; (2) breaking into new products through a) more neutral and rational trade policy and taxation and bonded warehouse schemes; b) concerted efforts to spur domestic investment and attract foreign direct investment, to contribute to export promotion and diversification, including by easing the energy and land constraints; and c) strategic development and promotion of services trade; (3) improving worker and consumer welfare by a) improving skills and literacy; b) implementing labor and work safety guidelines; and c) making safety nets more effective in dealing with trade shocks; and (4) building a supportive environment, including a) sustaining sound macroeconomic fundamentals; and b) strengthening the institutional capacity for strategic policy making aimed at the objective of international competitiveness to help bring focus and coherence to the government’s reform efforts. This second volume provides in-depth analysis across seven cross-cutting themes that underpin most of the findings of pillars 1 and 2 above.

Trouble in the Making?

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Publisher : World Bank Publications
ISBN 13 : 1464811938
Total Pages : 288 pages
Book Rating : 4.4/5 (648 download)

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Book Synopsis Trouble in the Making? by : Mary Hallward-Driemeier

Download or read book Trouble in the Making? written by Mary Hallward-Driemeier and published by World Bank Publications. This book was released on 2017-10-12 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Technology and globalization are threatening manufacturing’s traditional ability to deliver both productivity and jobs at a large scale for unskilled workers. Concerns about widening inequality within and across countries are raising questions about whether interventions are needed and how effective they could be. Trouble in the Making? The Future of Manufacturing-Led Development addresses three questions: - How has the global manufacturing landscape changed and why does this matter for development opportunities? - How are emerging trends in technology and globalization likely to shape the feasibility and desirability of manufacturing-led development in the future? - If low wages are going to be less important in defining competitiveness, how can less industrialized countries make the most of new opportunities that shifting technologies and globalization patterns may bring? The book examines the impacts of new technologies (i.e., the Internet of Things, 3-D printing, and advanced robotics), rising international competition, and increased servicification on manufacturing productivity and employment. The aim is to inform policy choices for countries currently producing and for those seeking to enter new manufacturing markets. Increased polarization is a risk, but the book analyzes ways to go beyond focusing on potential disruptions to position workers, firms, and locations for new opportunities. www.worldbank.org/futureofmanufacturing

Bangladesh's Economic and Social Progress

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Publisher : Springer Nature
ISBN 13 : 9811516839
Total Pages : 450 pages
Book Rating : 4.8/5 (115 download)

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Book Synopsis Bangladesh's Economic and Social Progress by : Munim Kumar Barai

Download or read book Bangladesh's Economic and Social Progress written by Munim Kumar Barai and published by Springer Nature. This book was released on 2020-03-31 with total page 450 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book evaluates Bangladesh’s impressive economic and social progress, more often referred to as a ‘development surprise’. In doing so, the book examines the gap in existing explanations of Bangladesh’s development and then offers an empirically informed analysis of a range of distinctive factors, policies, and actions that have individually and collectively contributed to the progress of Bangladesh. In an inclusive way, the book covers the developmental role, relation, and impact of poverty reduction, access to finance, progress in education and social empowerment, reduction in the climatic vulnerability, and evolving sectoral growth activities in the agriculture, garments, and light industries. It also takes into account the important role of the government and NGOs in the development process, identifies bottlenecks and challenges to Bangladesh’s future development path and suggests measures to overcome them. By providing an inclusive narrative to theorize Bangladesh’s development, which is still missing in the public discourse, this book posits that Bangladesh per se can offer a development model to other developing countries.

Competitive Cities in the 21st Century

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Publisher : Asian Development Bank
ISBN 13 : 9290924314
Total Pages : 408 pages
Book Rating : 4.2/5 (99 download)

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Book Synopsis Competitive Cities in the 21st Century by : Kyeong Ae Choe

Download or read book Competitive Cities in the 21st Century written by Kyeong Ae Choe and published by Asian Development Bank. This book was released on 2011-10-01 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic challenges in developing Asian countries have become more complex: urban populations are growing at great cost to the environment, climate change has increased risks of natural disasters, and income gaps within and between developing countries are widening. These factors threaten the sustainable growth and development of urban areas, the drivers of Asia's economy. A strategic approach for inclusive growth is needed. The City Cluster Economic Development approach provides a strategic framework and a set of analytical tools, which governments, businesses, and communities can use to support the inclusive and sustainable development of competitive urban economies in Asia. Said approach was developed and tested by the Asian Development Bank to improve the basis for integrated planning and development of urban regions in Asia and the Pacific. It also elps urban managers and other city stakeholders identify action plans and determine priority investment areas.

Textiles and Apparel

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Publisher :
ISBN 13 :
Total Pages : 184 pages
Book Rating : 4.:/5 (31 download)

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Book Synopsis Textiles and Apparel by : United States Tariff Commission

Download or read book Textiles and Apparel written by United States Tariff Commission and published by . This book was released on 1968 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Sewing Success?

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Publisher : World Bank Publications
ISBN 13 : 0821389734
Total Pages : 535 pages
Book Rating : 4.8/5 (213 download)

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Book Synopsis Sewing Success? by : Gladys Lopez-Acevedo

Download or read book Sewing Success? written by Gladys Lopez-Acevedo and published by World Bank Publications. This book was released on 2012-03-14 with total page 535 pages. Available in PDF, EPUB and Kindle. Book excerpt: The end of the MFA was followed by rising apparel exports, falling prices, and a reallocation of production and employment between countries. There were also significant changes within countries. The first main finding of this report is that export and employment patterns after the MFA/ATC did not necessarily match predictions. While many predicted that production would shift to low-wage countries, this book shows that only 13 percent of variation in export changes post-MFA can be explained by the differences in wage levels. Second, changes in exports are usually, but not always, good indicators of what happens to wages and employment within countries. This is especially important for policy because it shows that simply using exports as a metric of 'success' in terms of helping the poor is not sufficient. Third, the Book identifies the specific ways that changes in the global apparel market affected earnings. The Book shows that wage premiums change in predictable ways: rising (in most cases) in countries that were proactive in adapting to the MFA phase-out and expanded their market shares, and falling in countries that failed to respond in a timely fashion to the changing environment. The Book shows that promoting 'upgrading' (defined as shifting to higher-value goods, shifting up the value chain, or 'modernizing' production techniques) seems to be necessary for sustainable competitiveness in the apparel sector but does not necessarily help the poor. Policies that support upgrading need to be complemented with targeted workforce development to make sure that the most vulnerable workers are not left behind. Having a vision for the evolution of the apparel sector that incorporates developing worker skills seems crucial. Otherwise, less-skilled workers could miss out on opportunities to gain valuable work experience in manufacturing.

Ready-made Garment Industry in Sri Lanka

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Publisher :
ISBN 13 : 9789558708248
Total Pages : 267 pages
Book Rating : 4.7/5 (82 download)

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Book Synopsis Ready-made Garment Industry in Sri Lanka by : Saman Kelegama

Download or read book Ready-made Garment Industry in Sri Lanka written by Saman Kelegama and published by . This book was released on 2004 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributed articles.

Foreign Direct Investment in South Asia

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Publisher : Springer Science & Business Media
ISBN 13 : 8132215362
Total Pages : 378 pages
Book Rating : 4.1/5 (322 download)

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Book Synopsis Foreign Direct Investment in South Asia by : Pravakar Sahoo

Download or read book Foreign Direct Investment in South Asia written by Pravakar Sahoo and published by Springer Science & Business Media. This book was released on 2013-10-01 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the 1990s, the governments of South Asian countries acted as ‘facilitators’ to attract FDI. As a result, the inflow of FDI increased. However, to become an attractive FDI destination as China, Singapore, or Brazil, South Asia has to improve the local conditions of doing business. This book, based on research that blends theory, empirical evidence, and policy, asks and attempts to answer a few core questions relevant to FDI policy in South Asian countries: Which major reforms have succeeded? What are the factors that influence FDI inflows? What has been the impact of FDI on macroeconomic performance? Which policy priorities/reforms needed to boost FDI are pending? These questions and answers should interest policy makers, academics, and all those interested in FDI in the South Asian region and in India, Pakistan, Bangladesh, Sri Lanka and Pakistan.

Asian Development Outlook 2020

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Publisher : Asian Development Bank
ISBN 13 : 9292621564
Total Pages : 737 pages
Book Rating : 4.2/5 (926 download)

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Book Synopsis Asian Development Outlook 2020 by : Asian Development Bank

Download or read book Asian Development Outlook 2020 written by Asian Development Bank and published by Asian Development Bank. This book was released on 2020-04-01 with total page 737 pages. Available in PDF, EPUB and Kindle. Book excerpt: After a disappointing 2019, growth prospects in developing Asia have worsened under the impact of the current health crisis. Signs of incipient recovery near the turn of this year were quickly overthrown as COVID-19 broke out in January 2020 in the region’s largest economy and subsequently expanded into a global pandemic. Disruption to regional and global supply chains, trade, and tourism, and the continued spread of the outbreak, leave the region reeling under massive economic shocks and financial turmoil. Across Asia, the authorities are responding with policies to contain the outbreak, facilitate medical interventions, and support vulnerable businesses and households. Assuming that the outbreak is contained this year, growth is expected to recover in 2021. Especially to face down fundamental threats such as the current medical emergency, innovation is critical to growth and development. As some economies in developing Asia challenge the innovation frontier, many others lag. More and better innovation is needed in the region to sustain growth that is more inclusive and environmentally sustainable. Five key drivers of innovation are sound education, productive entrepreneurship, high-quality institutions, efficient financial systems, and dynamic cities that excite knowledge exchange. The journey to creating an innovative society takes long-term commitment and hard work.

Supply Chain Governance for Social Sustainability

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Publisher : Linköping University Electronic Press
ISBN 13 : 917685020X
Total Pages : 300 pages
Book Rating : 4.1/5 (768 download)

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Book Synopsis Supply Chain Governance for Social Sustainability by : Nandita Farhad

Download or read book Supply Chain Governance for Social Sustainability written by Nandita Farhad and published by Linköping University Electronic Press. This book was released on 2019-08-15 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: This PhD thesis approaches the phenomenon of supply chain governance for social sustainability in the ready-made garment industry in Bangladesh. This research is based on a study of eight large multinational corporations (e.g. clothing brands and retailers) and their ready-made garment suppliers. The purpose of this research is to understand how supply chain governance mechanisms and governance structures improve social sustainability performance when stakeholders are engaged. The study identifies four main governance systems, namely, market-based, hierarchical controlbased, collaborative multi-stakeholder-based and relational cross-sectoral-based. These governance systems are employed in the supply chain by the multinational corporations in combination with different stakeholders, such as suppliers, multi-stakeholder-initiatives, and non-government organisations. The study focuses on the challenges faced by the multinational corporations to ensure social sustainability, whilst at the same time, incorporating suppliers’ viewpoints on the consequences of different governance systems for social sustainability. This research shows the choice of governance structures from market-based, hierarchy-based, collaboration-based and relational-based depend on the cost of managing relationships with the stakeholders and potential risks of governance in a given situation. An effective governance structure for a multinational corporation in a particular context is determined by how well the structure supports governance mechanisms to reduce associated transaction risks that results from potential opportunistic behaviour of the suppliers. In this research, it is argued that governance structure provides the platform for practicing a set of governance mechanisms. The study claims that social sustainability governance incorporates three mechanisms with separate outcomes: one consists of buyer-driven control-based mechanisms which include codes of conduct, supplier assessment and monitoring, and supplier training for regular social compliance; the second consists of multi-stakeholder-based governance mechanisms for structural compliance when unexpected problems occur, for example, building collapse, electrical and fire safety risks emerge; and the third comprises cross-sectoral governance mechanisms when the multinational corporations involve with non-government organisations for social development of the garment workers and community by facilitating drinking water, health-hygiene, education, and so on. This thesis contributes to the Sustainable Supply Chain Management literature by expanding knowledge of supply chain governance through bringing an understanding of governance mechanisms, governance structures and stakeholder engagements for social sustainability. As the demand for supply chain governance for social sustainability are growing, this thesis can help responsible corporate sourcing managers to develop a deeper understanding of how supply chain governance can affect social sustainability. Denna doktorsavhandling tar sig an fenomenet leverantörsstyrning för social hållbarhet i klädindustrin i Bangladesh. Forskningen baseras på en studie av åtta stora multinationella företag, tillika återförsäljare av kläder och välkända klädmärken. Syftet med studien är att förstå hur leverantörsstyrningsmekanismer och styrstrukturer kan förbättra socialt hållbarhetsarbete när flera aktörer är engagerade och samverkar. Resultatet av studien indikerar att multinationella företag de facto engagerar sig med andra aktörer för att förbättra sin förmåga att bedriva socialt hållbarhetsarbete. Studien identifierar fyra olika typer av leverantörsstyrsystem: ett marknadsbaserat, ett hierarkiskt kontrollbaserat, ett kollaborativt multi-intressentbaserat samt ett relationellt sektorsövergripande system. Dessa styrningssystem tillämpas i leverantörskedjan av de multinationella företagen i samarbete med andra aktörer såsom leverantörer, ‘multi-intressentinitiativ’ och icke-statliga organisationer. Studien fokuserar dels på de utmaningar som föreligger för de multinationella företagen när det gäller att säkerställa social hållbarhet, dels på hur leverantörer uppfattar konsekvenserna av de olika styrningssystemen för social hållbarhet. Denna forskning visar att valet av styrstruktur, från marknadsbaserad, hierarkibaserad, kollaborativ och relationell är beroende dels av kostnaden för att hantera och upprätthålla relationer med de olika aktörerna, dels av de potentiella riskerna som föreligger i en viss situation. Vad som utgör en effektiv styrstruktur för ett multinationellt företag i en viss given kontext avgörs av hur väl strukturen stödjer styrningsmekanismer för att reducera transaktionsrisker som bottnar i ett potentiellt opportunistiskt beteende hos leverantörerna. I denna forskning argumenteras det för att struktur ger en plattform för att tillämpa ett antal styrningsmekanismer. Studien visar att styrning av social hållbarhet omfattar tre typer av mekanismer med olika utgång. En består av köparstyrda styrningsmekanismer som omfattar uppförandekoder, leverantörskontroll och leverantörsutbildning. Den andra består av multi-initiativbaserade styrningsmekanismer av hur det strukturella arbetet för att hantera oväntade problem (t.ex. bygg-, el- och brandsäkerhetsrisker) efterföljs. Det tredje omfattar sektorsövergripande styrningsmekanismer där de multinationella företagen samverkar med lokala icke-statliga organisationer i projekt som syftar till social utveckling (tillgång till rent vatten, hälso- & utbildningsinsatser, etc.) för fabriksarbetarna och det omgivande samhället. Denna avhandling bidrar till Sustainable Supply Chain Management-litteraturen då den utvidgar kunskapen om leverantörsstyrning för social hållbarhet genom en den ger en ökad förståelse för styrningsmekanismer, styrstrukturer och olika aktörers engagemang för social hållbarhet. I takt med att behovet av leverantörsstyrning för social hållbarhet ökar kan denna avhandling hjälpa ansvariga ‘corporate sourcing managers’ att utveckla en fördjupad förståelse för hur leverantörsstyrning kan påverka social hållbarhet.

Women and Trade

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Publisher : World Bank Publications
ISBN 13 : 1464815569
Total Pages : 270 pages
Book Rating : 4.4/5 (648 download)

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Book Synopsis Women and Trade by : World Bank;World Trade Organization

Download or read book Women and Trade written by World Bank;World Trade Organization and published by World Bank Publications. This book was released on 2020-09-04 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society. It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is essential to assess the potential impact of trade policy on both women and men and to develop appropriate, evidence-based policies to ensure that trade helps to enhance opportunities for all. Research on gender equality and trade has been constrained by limited data and a lack of understanding of the connections among the economic roles that women play as workers, consumers, and decision makers. Building on new analyses and new sex-disaggregated data, Women and Trade: The Role of Trade in Promoting Gender Equality aims to advance the understanding of the relationship between trade and gender equality and to identify a series of opportunities through which trade can improve the lives of women.

How important are financing constraints? : the role of finance in the business environment

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Author :
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 59 pages
Book Rating : 4./5 ( download)

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Book Synopsis How important are financing constraints? : the role of finance in the business environment by : Meghana Ayyagari

Download or read book How important are financing constraints? : the role of finance in the business environment written by Meghana Ayyagari and published by World Bank Publications. This book was released on 2006 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: What role does the business environment play in promoting and restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial markets, inadequate security and enforcement of property rights, poor provision of infrastructure, inefficient regulation and taxation, and broader governance features such as corruption and macroeconomic stability are discussed without any comparative evidence on their ordering. In this paper, the authors use firm level survey data to present evidence on the relative importance of different features of the business environment. They find that although firms report many obstacles to growth, not all the obstacles are equally constraining. Some affect firm growth only indirectly through their influence on other obstacles, or not at all. Using Directed Acyclic Graph methodology as well as regressions, the authors find that only obstacles related to finance, crime, and political instability directly affect the growth rate of firms. Robustness tests further show that the finance result is the most robust of the three. These results have important policy implications for the priority of reform efforts. They show that maintaining political stability, keeping crime under control, and undertaking financial sector reforms to relax financing constraints are likely to be the most effective routes to promote firm growth.