Ideas to Action:

Independent research for global prosperity

Publications

 

April 29, 2013

China's Development Finance to Africa: A Media-Based Approach to Data Collection - Working Paper 323

China’s presence in Africa is, beyond dispute, large in both trade and what can be called official finance to Africa. But how large, exactly? A new database from the College of William and Mary brings additional resources to help answer the question. This paper describes the new database, its key findings, and its possible applications and limitations of the data, which is being made publicly available for the first time.

Austin Strange , Brad Parks , Michael J. Tierney , Andreas Fuchs , Axel Dreher and Vijaya Ramachandran
March 31, 2008

Power and Roads for Africa

CGD senior fellow Vijaya Ramachandran argues in this essay that the next U.S. president can play a valuable role in helping Africa to overcome two crucial barriers to poverty reduction: lack of power and lack of roads. Ramachandran urges the next president to create a $1 billion Clean Energy Fund for Africa to facilitate the transfer of U.S. infrastructure technology, including renewable energy; and to encourage the World Bank and the African Development Bank to focus on cross-country regional infrastructure projects, also with a strong emphasis on clean technology. The essay is included in a forthcoming CGD volume: The White House and the World: A Global Development Agenda for the Next U.S. President.

Learn More

October 1, 2007

Does Influence-Peddling Impact Industrial Competition? Evidence from Enterprise Surveys in Africa - Working Paper 127

CGD visiting fellow Vijaya Ramachandran and co-authors Manju Kedia Shah and Gaiv Tata used firm-level survey data from more than 1,500 enterprises in six African countries to discover how and why African firms lobby. Their working paper concludes that larger, entrenched firms lobby to protect their market share, and that this inhibits competition, reducing efficiency and growth. The authors suggest that regional integration could be one way out of this trap, because it expands the number of enterprises in the marketplace as well as the size of the market, thus making it both harder and less worthwhile for domestically entrenched enterprises to lobby to protect their market share.

Learn More

Vijaya Ramachandran , Manju Kedia Shah and Gaiv Tata
February 20, 2007

Why Doesn't Africa Get More Equity Investment? Frontier Stock Markets, Firm Size and Asset Allocations of Global Emerging Market Funds - Working Paper 112

Africa receives only a tiny fraction of global investments in emerging markets. But the problem is not that fund managers are scared away by a seemingly steady stream of bad news out of Africa, nor is a general marketing of Africa to global investors the solution. Instead the authors of this new CGD working paper find that the small size of African markets and low levels of liquidity are a binding deterrent for foreign institutional investors. Drawing on firm surveys to explore why African firms remain small, the authors offer practical recommendations for increasing portfolio investment in Africa. Learn more

Todd Moss , Vijaya Ramachandran and Scott Standley
January 16, 2007

Why Are There So Few Black-Owned Firms in Africa? Preliminary Results from Enterprise Survey Data - Working Paper 104

Countries cannot grow without a vibrant domestic private sector, yet most growth in sub-Saharan Africa in the past decade has come from extractive industries, not private, entrepreneurial activity. Furthermore, non-extractive activity in the private sector is often dominated by firms owned by minority ethnic entrepreneurs--of Asian, Middle Easterner or Caucasian descent--not indigenous Africans. In this working paper, CGD visiting fellow Vijaya Ramachandran and her co-author analyze the constraints faced by domestic firms in five countries in sub-Saharan Africa. They offer policy recommendations to help indigenous entrepreneurs enter and survive in the private sector, including increasing university education and building networks among business professionals.Learn more

Vijaya Ramachandran and Manju Kedia Shah
January 20, 2006

Does the Private Sector Care About AIDS?-Working Paper 76

How do employers decide whether to provide their employees with HIV/AIDS prevention services? CGD Visiting Fellow Vijaya Ramachandran's data from 860 firms and 4,955 workers in Uganda, Tanzania, and Kenya shows that larger firms, and those with more highly skilled workers, invest more in HIV/AIDS prevention. Firms in which more than 50 percent of workers are unionized also are more likely to provide more prevention services.

Learn More

Vijaya Ramachandran , Manju Kedia Shah and Ginger Turner
February 18, 2005

Business Environment and Comparative Advantage in Africa: Evidence from the Investment Climate Data - Working Paper 56

This paper ties together the macroeconomic and microeconomic evidence on the competitiveness of African manufacturing sectors. The conceptual framework is based on the newer theories that see the evolution of comparative advantage as influenced by the business climate—a key public good—and by external economies between clusters of firms entering in related sectors. Macroeconomic data from purchasing power parity (PPP), though imprecisely measured, estimates confirms that Africa is high-cost relative to its levels of income and productivity. This finding is compared with firm-level evidence from surveys undertaken for Investment Climate Assessments in 2000-2004.

June 10, 2004

Is Africa’s Skepticism of Foreign Capital Justified? Evidence from East African Firm Survey Data - Working Paper 41

The world has increasingly recognized that private capital has a vital role to play in economic development. African countries have moved to liberalize the investment environment, yet have not received much FDI. At least part of this poor performance is because of lingering skepticism toward foreign investment, owing to historical, ideological, and political reasons. Results from our three-country sample suugest that many of the common objections to foreign investment are exaggerated or false. Africa, by not attracting more FDI, is therefore failing to fully benefit from the potential of foreign capital to contribute to economic development and integration with the global economy.

Todd J. Moss , Vijaya Ramachandran and Manju Kedia Shah