Effects of Economic Policy on Firm Performance in Developed and Developing Countries

This paper analyzes the effects of economic policy on firm performance in developed and developing countries, using a sample firms classified by turnover. The methodology refers to estimation dynamic panel fixed model. results show that priority tools based price, balance payments employment control do not influence performance. However, debt increases Africa. In high-income countries China, it is savings exchange rate policies have positive effect It recommended policymakers Africa adopt borrowing compliance with ceilings concessional interest rates so as increase service suffocate government’s cash flow. must be maintained at same pace mobilization meet needs growth sectors. Exchange able absorb shocks always adapt market.