Has Low Productivity Constrained Competitiveness of African Firms? : Comparison of the Firm Performances with Asian Firms
AbstractIt has been argued that the slow growth of productivity is one of critical sources of stagnation of the African manufacturing sector but empirical supports are limited. Using the inter-regional firm data of the garment industries, productive efficiency and its contribution to unit costs are compared between Kenya and Bangladesh which is the one of the largest exporters in the world. Our estimates have indicated that there is no clear gap in the average technical efficiency of the two industries despite conservative estimation, while allocative efficiency is significantly lower in the Kenyan industry. Unit costs greatly differ between the two industries, where impact of inefficiency on unit costs is small and labour cost appears to have the largest impact. Productivity accounts little for the stagnation in the garment industry.
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Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 129.
Date of creation: Dec 2007
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 129. 2007.12
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-DEV-2008-01-05 (Development)
- NEP-EFF-2008-01-05 (Efficiency & Productivity)
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