Exports and Firm - level Efficiency in African Manufacturing
AbstractIn this paper, we use firm-level panel data for the manufacturing sector in four African countries to estimate the effect of exporting on efficiency. Measures of firm-level efficiency using stochastic production frontier models are constructed for the period 1992 to 1995. We find that there are large efficiency gains from exporting both in terms of levels and growth, and contrary to China, the gains are largest for the new entrants to exporting. We control for unobserved heterogeneity using a dynamic model with correlated random effects. Results are robust and consistently, we find evidence of a learning-by-exporting effect as well as self-selection of the most efficient firms into exporting. The effect of exporting on efficiency appears to be larger in this African sample than in comparable studies of other regions which is consistent with the smaller size of domestic markets.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2000-16.
Date of creation: 01 Jul 2000
Date of revision:
Other versions of this item:
- Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Jean Habarurema & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Söderbom & Franc, 2000. "Exports and firm-level efficiency in African manufacturing," CSAE Working Paper Series 2000-16, Centre for the Study of African Economies, University of Oxford.
- Bigsten, A. & Collier, P. & Dercon, S., 2000. "Exports and Firm-Level Efficiency in African Manufacturing," Papers 2000-04, Ecole des Hautes Etudes Commerciales de Montreal-.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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