The impact of trade facilitation on African SMEs’ performance

Authors: Hansen-Addy, A.E., Parrilli, D.M. and Tingbani, I.

Journal: Small Business Economics

Volume: 62

Issue: 1

Pages: 105-131

eISSN: 1573-0913

ISSN: 0921-898X

DOI: 10.1007/s11187-023-00756-4

Abstract:

Whilst contemporary literature indicates that the business environment (BE) impacts almost all entrepreneurial activities, there are indications that the unique business and institutional setting in Africa (with its challenges and opportunities) and the nature of SMEs (their strengths and weaknesses), among other factors, lead to the context-specific impact of regulations on the performance of African SMEs. Using regressions and propensity score matching methods on a panel of 39,461 firm observations (27 African countries) from the World Bank Enterprise Surveys, we unearthed evidence to suggest that whilst enabling tax administration and business licensing regulations improve SMEs’ performance, trade facilitation impedes African SMEs’ performance. Furthermore, the institutional context of competition (from foreign firms) worsens trade facilitation’s negative impact on African SMEs’ performance. These findings suggest a fine-tuning of BE regulations in African countries. Trade facilitation, for example, must be carefully thought through and implemented in a way to benefit SMEs.

https://eprints.bournemouth.ac.uk/38243/

Source: Scopus

The impact of trade facilitation on African SMEs' performance

Authors: Parrilli, M.D., Tingbani, I. and Hansen-Addy, A.

Journal: Small Business Economics: an international journal

Publisher: Springer Nature

ISSN: 0921-898X

Abstract:

While contemporary literature indicates that the business environment (BE) impacts almost all entrepreneurial activities, there are indications that the unique business and institutional setting in Africa (with its challenges and opportunities) and the nature of SMEs (their strengths and weaknesses), among other factors, lead to context-specific impact of regulations on the performance of African SMEs. Using regressions and propensity score matching methods on a panel of 39,461 firm observations (27 African countries) from the World Bank Enterprise Surveys, we unearthed evidence to suggest that while enabling tax administration and business licensing regulations improve SMEs’ performance, trade facilitation impedes African SMEs’ performance. Furthermore, the institutional context of competition (from foreign firms) worsens trade facilitation’s negative impact on African SMEs’ performance. These findings suggest a fine-tuning of BE regulations in African countries. Trade facilitation, for example, must be carefully thought through and implemented in a way to benefit SMEs.

https://eprints.bournemouth.ac.uk/38243/

Source: Manual

The impact of trade facilitation on African SMEs' performance

Authors: Parrilli, M.D., Tingbani, I. and Hansen-Addy, A.

Journal: Small Business Economics: an international journal

Publisher: Springer Nature

ISSN: 0921-898X

Abstract:

While contemporary literature indicates that the business environment (BE) impacts almost all entrepreneurial activities, there are indications that the unique business and institutional setting in Africa (with its challenges and opportunities) and the nature of SMEs (their strengths and weaknesses), among other factors, lead to context-specific impact of regulations on the performance of African SMEs. Using regressions and propensity score matching methods on a panel of 39,461 firm observations (27 African countries) from the World Bank Enterprise Surveys, we unearthed evidence to suggest that while enabling tax administration and business licensing regulations improve SMEs’ performance, trade facilitation impedes African SMEs’ performance. Furthermore, the institutional context of competition (from foreign firms) worsens trade facilitation’s negative impact on African SMEs’ performance. These findings suggest a fine-tuning of BE regulations in African countries. Trade facilitation, for example, must be carefully thought through and implemented in a way to benefit SMEs.

https://eprints.bournemouth.ac.uk/38243/

https://www.springer.com/journal/11187

Source: BURO EPrints