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Constraints or Complaints? Business Climate and Firm Performance Perceptions in Uganda

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  • Joseph Mawejje
  • Rachel K. Sebudde

Abstract

This paper identifies the business constraints that are most binding for firm performance. Using panel methods on novel quarterly Ugandan business climate data, we exploit perceived changes in business climate constraints to account for changes in firm performance. Not all identified constraints are binding for firm performance. Macroeconomic instability, demand stability, access to finance, corruption/bribery, and weather variability are found to be binding constraints. Firms’ expectations about future performance outcomes are associated with current perceptions about these constraints, alleviating endogeneity concerns to some extent. While taxation constraints are usually highly ranked, we do not find evidence linking them to firm performance.

Suggested Citation

  • Joseph Mawejje & Rachel K. Sebudde, 2019. "Constraints or Complaints? Business Climate and Firm Performance Perceptions in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2513-2525, December.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:12:p:2513-2525
    DOI: 10.1080/00220388.2018.1502878
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    Cited by:

    1. Karmen Naidoo & Léonce Ndikumana, 2023. "The role of unit labor costs in African manufacturing investment and export performance," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1874-1909, August.
    2. Binhadab, Nouf & Breen, Michael & Gillanders, Robert, 2021. "Press freedom and corruption in business-state interactions," Economic Systems, Elsevier, vol. 45(4).
    3. Saridakis, George & Georgellis, Yannis & Muñoz Torres, Rebeca I. & Mohammed, Anne-Marie & Blackburn, Robert, 2021. "From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?," Journal of Business Research, Elsevier, vol. 136(C), pages 567-579.
    4. Michael Breen & Robert Gillanders, 2020. "Press Freedom and Corruption Perceptions: Is There a Reputational Premium?," Politics and Governance, Cogitatio Press, vol. 8(2), pages 103-115.

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