Contents -- Acknowledgments -- Executive Summary -- Abbreviations -- Chapter 1 Macroeconomic Background -- Economic Growth -- Investment and Savings -- Interest Rates and Inflation -- Exchange Rate -- Conclusion -- Notes -- Chapter 2 An Analysis of Firm Performance -- Productivity -- Profitability -- Exporting -- Notes -- Chapter 3 Characteristics of the Labor Market -- Worker Characteristics -- Remuneration and Determinants of Wages -- Employment Growth -- Training -- Labor Regulation -- Conclusions -- Notes -- Chapter 4 Access to and Cost of Finance -- Finance as an Obstacle to Enterprise Operations and Growth -- Perceptions about Access to Finance by Firm Type -- Objective Indicators on Access to and the Cost of Finance -- Notes -- Chapter 5 Other Aspects of the Investment Climate -- Perceptions about Investment Climate Problems -- Major Constraints on Enterprise Operation and Growth -- Other Constraints on Enterprise Operations and Growth -- Notes -- References -- Index -- Figures -- 1.1 Cross-Country Comparison of per Capita Growth, 1994-2003 -- 1.2 Cross-Country Comparison of Gross Fixed Capital Formation, Average 1994-2003 -- 1.3 Nominal and Real Overdraft Rates, 1991-2004 -- 1.4 South Africa's Real Exchange Rate, 1998-2004 -- 2.1 Cross-Country Comparison of Labor Productivity (in the Garment Industry) -- 2.2 Cross-Country Comparison of Labor Costs -- 2.3 Cross-Country Comparison of Unit Labor Costs -- 2.4 Cross-Country Comparison of Capital Intensity -- 2.5 Cross-Country Comparison of Capital Productivity -- 2.6 Cross-Country Comparison of Capacity Utilization -- 2.7 Cross-Country Comparison of Profitability -- 2.8 Cross-Country Comparison of Exports -- 2.9 Average Export Growth, 2000 and 2002 -- 3.1 Firm-Level Wages in South Africa, by Industry and Enterprise Size -- 3.2 Wage Growth, 1985-2003.

3.3 Employment Growth in Manufacturing Sector -- 3.4 Proximate Causes of Employment Growth -- 3.5 Sources of Employment Growth -- 3.6 Constraints on Employment Growth -- 3.7 Cross-Country Comparison of Wages -- 3.8 Median Time Needed to Fill Vacancies for Skilled and Unskilled Positions -- 3.9 Workers Receiving Training, by Country -- 3.10 Share of Workers Receiving Training, by Type and Length of Training -- 3.11 Cross-Country Comparison of Difficulty and Costs of Hiring and Firing -- 4.1 Cross-Country Comparison of Firms, by Perceptions of Access to and Cost of Financing and by Inflation and Loan Interest Rate -- 4.2 Cross-Country Comparison of Access to Finance -- 4.3 Cross-Country Comparison of Trade Credit -- 4.4 Loan Status and Reasons for Not Having Loans -- 4.5 Share of Firms Rating Access to and Cost of Finance as a Major Obstacle, by Size, Ownership, Presence of Audited Accounts, and Age -- 4.6 Cross-Country Comparison of Access, by Firm Size -- 4.7 Working Capital and New Investment -- 5.1 Percentage of Firms Rating Investment Climate Areas as a Major or Very Severe Constraint -- 5.2 Cross-Country Comparison of Firms Rating Crime as a Serious Problem -- 5.3 Cross-Country Comparison of Cost of Crime as a Percentage of Sales -- 5.4 Cross-Country Comparison of Crime Costs, by Cost Type -- 5.5 Cross-Country Comparison of Crime Reporting and Cases Solved -- 5.6 Total Costs of Crime and Security in South Africa, by Sector -- 5.7 Total Costs of Crime and Security in South Africa, by Ownership -- 5.8 Share of Exporters Rating Macroeconomic Instability as a Serious Obstacle to Growth -- 5.9 Impact of HIV on Firm Performance, by Size Class -- 5.10 Firm-Level HIV Prevalence, by Size Class -- 5.11 Average Number of Days Absent in Last 30 Days Due to Illness, by Size Class -- 5.12 Worker Perceptions of and Knowledge about HIV.

5.13 Time to Clear Imports and Exports through Customs -- 5.14 Cross-Country Comparison of Regulatory Burden -- 5.15 Firms' Confidence That Courts Will Enforce Rights -- 5.16 Cross-Country Comparison of Weeks to Resolve Overdue Payment Cases in Courts -- 5.17 Cross-Country Comparison of Median Energy Costs as Percent of Sales -- 5.18 Cross-Country Comparison of Average Losses Due to Power Outages as Percent of Sales -- Tables -- 1.1 Reuters Consensus Forecast for Real GDP Growth for South Africa, 2005-07 -- 1.2 Sectoral Composition of GDP, 1998-2003 -- 1.3 Macroeconomic Outlook Summary, 2004-07 -- 1.4 Gross Fixed Capital Formation by Private Enterprises, 1994-2003 (constant 2000 prices) -- 1.5 Private Business Enterprise Share of Capital Formation, 1994-2003 -- 1.6 Gross Fixed Capital Formation by Type of Economic Activity, 1994-2003 -- 1.7 Corporate Saving and Gross Saving, 1994-2003 (ratio of gross saving to GDP in current prices) -- 2.1 Characteristics of Sample for Investment Climate Survey -- 2.2 Median Productivity by Industry, Size, Export Status, Location, and Ownership, 2002 -- 2.3 Impact of Enterprise Characteristics on Total Factor Productivity -- 2.4 Test for Constant Returns to Scale -- 2.5 Main Export Destinations for Enterprises in the Investment Climate Surveys -- 2.6 Export Destinations -- 3.1 Characteristics of Modal Worker -- 3.2 Firm-Level Estimates of Median Monthly Salary -- 3.3 Percentage of Workers Unionized as Reported by Firms -- 3.4 Percentage of Workers Unionized as Reported by Workers -- 3.5 Determinants of Wages: Firm-Level Estimation -- 3.6 Median Monthly Wages and Average Schooling, Individual-Level Data -- 3.7 Individual-Level Wage Regressions -- 3.8 Employment Growth, 2000-02 -- 3.9 Percentage of Workers Receiving Firm-Based Training -- 3.10 Determinants of Likelihood That Firms Provide Training.

3.11 Reasons That Firms Do Not Provide Training -- 4.1 Impact of Ownership on Perceptions about Access to Finance -- 4.2 Financing by Type of Firm -- 5.1 Percentage of Manufacturing Firms Rating Investment Climate Areas as Major or Very Severe Constraints, by Enterprise Type -- 5.2 Percentage of Firms Rating Investment Climate Areas as Major or Very Severe Constraints, by Province and Sector -- 5.3 Total Costs of Crime and Security in South Africa, by Firm Size -- 5.4 Total Costs of Crime and Security in South Africa, by Location -- 5.5 Impact of HIV Epidemic on Firm Performance -- 5.6 Impact of HIV Epidemic -- 5.7 Worker Perceptions about HIV Epidemic -- 5.8 Regulatory Burden for Firms -- 5.9 Time Courts Take to Resolve Business Disputes -- 5.10 Company Income Tax, 1994/5-2003/4.