Determinates and consequences of firm success in Liberia

Researchers and policymakers have increasingly realized that the same factors that determine the growth of the private sector also tend to determine the aggregate growth rate of the economy. Yet we know very little about specific factors that influence the success of firms in the poorest countries, and concrete, short-term consequences of their success. By shedding light on (a) what factors lead to firm success in Liberia, (b) how firm success influences the organization of production, expansion, and firm growth, this project will further our understanding of how best to promote growth. Liberia’s private sector is in its post-war infancy. The variation across other African countries – some with a dynamic and active private sector, others with little private sector activity – illustrate the stakes. The results from this project will inform Liberian policymakers of (a) what the current firm-level barriers to success are, and (b) what specific measures policymakers can implement in order to facilitate the growth of small and medium-sized firms in Liberia.