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Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria

Author

Listed:
  • Kanang Amos Akims

    (Department of Economics, University of Jos, Jos 930001, Nigeria)

  • Dianah Mukwate Ngui

    (School of Economics, Kenyatta University, Nairobi, Kenya)

Abstract

This paper investigates how productivity influences firms' exports. Various firm characteristics are employed to test the self-selection hypothesis alongside the effects of firms' productivity on their share of exports in total sales. Using a pseudo-panel data set constructed from the firm-level data for the manufacturing sector in Nigeria, we find no evidence that higher productivity influences the decision on whether or not a firm would participate in exports. However, it is established that higher productivity increases the share of exports in total sales of firms that are already participating in foreign markets. A policy implication of our result is that Nigeria can realize a larger share of manufactured exports in total merchandise exports by directing efforts towards improving primarily the productivity of firms that are already involved in exports.

Suggested Citation

  • Kanang Amos Akims & Dianah Mukwate Ngui, 2019. "Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 14(3), pages 428-460, September.
  • Handle: RePEc:fec:journl:v:14:y:2019:i:3:p:428-460
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0019-0
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    More about this item

    Keywords

    productivity; self-selection; export performance; manufacturing sector;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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