This Research Phase is an extension to iiG Phase 1, Theme 2 - 'Firm development and exports'. Phase 2 studies how private sector activity and markets can assist growth and development in Africa, and the institutional constraints limiting the impact of the private sector on growth. The research uses quantitative methods combining both survey and experimental data and focuses on three closely-related questions, the answers to which are central to understanding the potential for market-led development in Africa. These are: