Distance to one of these hubs has a strong impact on backward engagement, signaling that there is a strong benefit of proximity to headquarter economies.
These questions are particularly relevant for many African countries where business environments are generally less competitive and where policy challenges need to be confronted with more limited public resources.
See all case studies. In addition, the massive upgrading of infrastructure in Africa will require strengthening the regulatory framework for procurement and public-private partnerships in infrastructure as well as building relevant government capacity to manage these infrastructure contracts.
They also highlight the importance of the ongoing debate about the extent and desirability of integrating into regional and GVCs and the benefits associated with wider participation for developing countries.
Read about business reforms. The last section stresses the need for broad economic reform agendas to deepen African integration in value chain trade.
The index covers four types of measures: This lack of competition contributes to the high profit margins of transporters, which exceed percent along certain corridors. The impact of market size on backward participation is more pronounced in low-income countries than in middle- and high-income countries.
The OECD can assist governments in some of these areas through policy reviews that inform and guide reforms at national and subregional levels, through promoting adherence to selected instruments and building statistical capacity and by compiling better data.
National tax laws have not always kept pace with the increasing interconnection of global production and the movement of capital, driven by global corporations with aggressive tax planning strategies that exploit gaps in tax rules to shift profits to locations with lower taxes.
In addition to the poor quality of transport infrastructure and services, high transport costs in Africa can be explained by the absence of competition and inefficient regulation of the freight logistics sector. Africa captures a small but growing share of global value-added trade and constitutes one of the most integrated regions in GVCs.
Policy options for entering and expanding participation in GVCs GVCs have profoundly transformed global production and are becoming increasingly influential in determining future trade and FDI patterns.
Infrastructure provision and financing The quality and availability of infrastructure is an important factor in determining the attractiveness of a location for GVC investment decisions. Backward participation, however, has been growing faster than forward participation, increasing by 60 percent between and Given the strong impact of market size, industrial structure, and level of development on GVC participation, many of the smaller economies with low levels of industrial development are likely to benefit from stronger links with the larger countries in the region.
Distance to manufacturing hubs: When planning and designing infrastructure, particular attention should also be placed on intra-regional connections and spatial planning. Financial system development strategies need to encourage further competition in the banking sector and introduce policies that help limit collateral requirements and reduce credit information gaps.
After two decades of negative per capita growth, GDP growth has averaged 5 percent per year and GDP per capita has increased by 30 percent since Regional African value chains can also play a significant role in offering local producers, including small- and medium-sized enterprises SMEsopportunities to access fast-growing and more easily accessible markets across Africa.
The underlying case study now focuses on the top export product for each economy, on a very common manufactured product auto parts as its import product and on its largest trading partner for the export and import products.
Recent research shows that increasing backward participation leads to higher per capita domestic value-added in exports.
These include South Africa, Burundi, and Mauritius, where over one-third of firms have formal loans. Measuring Regulatory Quality and Efficiency, a World Bank Group flagship publication, is the 13th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it.
Global production networks in many industries rely on just-in-time production and depend on the reliability of supply of intermediate inputs.On November 10,the WBG Geneva Office hosted the presentation of this year’s Doing Business Report, which focused on the topic of “Measuring Regulatory Quality and Efficiency.” The Doing Business Report provides objective measures of business regulations for local firms in economies.
Ease of doing business index (1=most business-friendly regulations) from The World Bank: Data.
Benchmarking Public Procurement In line with this request, the Benchmarking Public Procurement report aims to support and enhance ficials, and the business community in many of the World Bank’s client countries (Independent Evaluation Group [IEG], ). The World Bank’s Doing Business report provides an assessment of a range of regulations affecting SMEs throughout the business life cycle.
In the latest report, Ireland is ranked 17th out of locations - an improvement of 2 places from last year. Doing Business going beyond efficiency - Turkey (English) Abstract. This economy profile for Doing Business presents the 11 Doing Business indicators for Turkey.
The World Bank Group's Doing Business report highlights the complications the private sector faces across countries by summarizing government regulations on business into comparable indicators. The issues identified by the annual report have prompted major reforms on property rights, contract enforcement, and other business procedures around the world.Download