Why can Mauritius export manufactures and Ghana not?
AbstractExports of labour-intensive manufactures from sub-Saharan Africa are negligible with the exception of Mauritius. Such exports from Ghana are low relative to other sub-Saharan African countries and relative to what would be predicted by its factor endowment. Firm level data from the two countries is used to assess the reasons for this poor performance. Large firms (those with more than 100 employees) are much more likely to be in the export market than smaller firms. It is shown that Mauritian firms are four times more efficient than those in Ghana while wages are six times higher. However for large firms the productivity differential is similar but wages in Mauritius are only three times those in Ghana. Large firms in Ghana cannot compete with those from Mauritius due to their high wages relative to productivity.
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Bibliographic InfoPaper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1999-10.
Date of creation: 1999
Date of revision:
Productivity; wages; manufacturing exports; sub-Saharan Africa.;
Other versions of this item:
- Francis Teal, 1999. "Why Can Mauritius Export Manufactures and Ghana Not?," The World Economy, Wiley Blackwell, vol. 22(7), pages 981-993, 09.
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