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Technology-related factors as determinants of export potential of Nigerian manufacturing firms

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  • Adeoti, John Olatunji
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    Abstract

    A critical input that enables capacity for export is investment in technology at the firm-level. Using a survey data, this study investigates technology investments by firms in Southwest Nigeria and how technology investment related factors affect the export potential of firms. Results demonstrate that investments in technology are dominated by imported technologies, investments in ICTs are becoming widespread, and technology investments are not directly targeted at improving the export potential of firms. The results also showed that firm size has a strong positive relationship with export potential, and it is the most important factor that affects the export potential of firms. The coefficient of firm size is the only parameter estimate that is consistently statistically significant at 1% level for all four export models estimated. Other technology investment related factors that impact positively on export potential include skills intensity, investment in skills upgrading, and investment in quality management.

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    Bibliographic Info

    Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

    Volume (Year): 23 (2012)
    Issue (Month): 4 ()
    Pages: 487-503

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    Handle: RePEc:eee:streco:v:23:y:2012:i:4:p:487-503

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    Web page: http://www.elsevier.com/locate/inca/525148

    Related research

    Keywords: Technology investment; Export; Manufacturing firms; Nigeria;

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    1. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
    2. John Olatunji ADEOTI, 2001. "Technology Investment In Pollution Control In Sub-Saharan Africa: Evidence From Nigerian Manufacturing," The Developing Economies, Institute of Developing Economies, vol. 39(4), pages 395-431, December.
    3. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
    4. Kumar, Nagesh & Saqib, Mohammed, 1996. "Firm size, opportunities for adaptation and in-house R & D activity in developing countries: the case of Indian manufacturing," Research Policy, Elsevier, vol. 25(5), pages 713-722, August.
    5. Lal, K., 1996. "Information technology, international orientation and performance: A case study of electrical and electronic goods manufacturing firms in India," Information Economics and Policy, Elsevier, vol. 8(3), pages 269-280, September.
    6. Francis Teal & Måns Söderbom & Francis Teal, 2000. "Skills, investment and exports from manufacturing firms in Africa," Economics Series Working Papers WPS/2000-08, University of Oxford, Department of Economics.
    7. Andrew Bernard & Joachim Wagner, 2001. "Export entry and exit by German firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 105-123, March.
    8. Lal, K., 2002. "E-business and manufacturing sector: a study of small and medium-sized enterprises in India," Research Policy, Elsevier, vol. 31(7), pages 1199-1211, September.
    9. Basile, Roberto, 2001. "Export behaviour of Italian manufacturing firms over the nineties: the role of innovation," Research Policy, Elsevier, vol. 30(8), pages 1185-1201, October.
    10. Mans Soderbom & Francis Teal, 2000. "Skills, investment and exports from manufacturing firms in Africa," CSAE Working Paper Series 2000-08, Centre for the Study of African Economies, University of Oxford.
    11. Biggs, T. & Shah, M. & Srivastava, P., 1995. "Technological Capabilities and Learning in African Enterprises," Papers 288, World Bank - Technical Papers.
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