MAIJEH, PAUL-DAVID CHUKWUEBUKA and Covenant University, Theses (2021) BUSINESS ENVIRONMENT AND FIRM PERFORMANCE IN NIGERIA. Masters thesis, COVENANT UNIVERSITY.
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Abstract
The business environment remains an important determinant of economic growth and prosperity in any economy as a result of its impact on the real sector. Hence, understanding its influence and impact, as well as studying the usefulness of policy remains sacrosanct. The study therefore examines the impact of business environments on firm performance in Nigeria across various levels of firm characteristics. The study utilises the 2014 World Bank Enterprise Survey (WBES) for Nigeria to measure the business environment, firm characteristics as well as firm performance. To measure the business environment, the study utilises an indexation methodology for the top six business environment obstacles experienced by firms, and employment growth and capacity utilisation to measure the performance of firms. Consequently, utilising the OLS estimation technique the study finds business environment obstacles to have a negative effect on firm performance, across varying levels of firm characteristics. Subsequent diagnostics tests such as the LINK test and VIF show that the model does not suffer from selection bias and multicollinearity. Furthermore, employing the PSM technique to evaluate the impact of the business environment on firm performance, the study finds that firms who experienced electricity, access to finance and corruption as a moderate to very severe obstacle performed significantly worse than firms who experienced otherwise, across varying levels of firm characteristics such as the firm sector, ownership and location. The findings provide the Nigerian government as well as relevant agencies policy implications to improve business environments and reduce obstacles to the barest minimum. In sum, improving electricity supply and delivery, increasing channels for access to credit and finance, as well as curbing corruption and bribery to the barest minimum will improve the performance of the firms, hence the real sector, and consequently improve economic growth and prosperity
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Business Environment, Business Obstacles, Firm Performance, Employment Growth, Capacity Utilisation and Propensity Score Matching. |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Hannah Akinwumi |
| Date Deposited: | 13 Dec 2021 12:35 |
| Last Modified: | 13 Dec 2021 12:35 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/15539 |
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