iiG Research Phase 2: Growth, Firms and Markets in Africa

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:

Firm Growth

What are the constraints to firm expansion in Africa? Does firm size matter for firm performance, and how can small firms grow large?

Innovation and Entrepreneurship

What role does innovation and entrepreneurship play in determining firm success? Can an entrepreneurial class be fostered?

Making Markets Work

What are the institutional constraints to making markets work better for growth in Africa? Can emerging private markets help to overcome failures in factor and output markets to ensure that markets work for the poor?