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Firm Efficiency And The Destination Of Exports: Evidence From Kenyan Plant‐Level Data

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  • Mats GRANÉR
  • Anders ISAKSSON

Abstract

Investigating the link between firm efficiency and exports in Kenyan manufacturing, the results show that exporters are more efficient than non‐exporters, and that relatively efficient firms self‐select into exporting. An important new finding is that only for export markets outside Africa must firms be efficient prior to entry. The probability of exporting to other African countries increases if production is intense in physical and human capital. For export activities outside Africa, firm size is more important. Contrary to many other studies, it is also found that export participation yields learning effects. When testing the hypothesis that the main source of learning effects is trade with developed countries (south–north), as opposed to trade with other developing countries (south–south), yet another new finding is that learning effects only obtain in south–south trade. Therefore, one can conclude that controlling for the destination of exports importantly improves the understanding of the relationship between firm efficiency and exports.

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  • Mats GRANÉR & Anders ISAKSSON, 2009. "Firm Efficiency And The Destination Of Exports: Evidence From Kenyan Plant‐Level Data," The Developing Economies, Institute of Developing Economies, vol. 47(3), pages 279-306, September.
  • Handle: RePEc:bla:deveco:v:47:y:2009:i:3:p:279-306
    DOI: 10.1111/j.1746-1049.2009.00087.x
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    File URL: https://doi.org/10.1111/j.1746-1049.2009.00087.x
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    Cited by:

    1. Sharma Chandan, 2017. "Do Firms Learn more from Exporting to the Developed Markets? Empirical Evidence of Indian Firms," Global Economy Journal, De Gruyter, vol. 17(1), pages 1-11, March.
    2. Juan Barboni & Nicolas Ferrari & Hanna Melgarejo & Adriana Peluffo, 2012. "Exports and Productivity: Does Destination Matter?," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(1), pages 25-58, January.
    3. Bresnahan, Lauren & Coxhead, Ian & Foltz, Jeremy & Mogues, Tewodaj, 2016. "Does Freer Trade Really Lead to Productivity Growth? Evidence from Africa," World Development, Elsevier, vol. 86(C), pages 18-29.
    4. José Contreras & Andrés Santeliz & Oscar Carvallo, 2012. "Patterns of technical efficiency in the Venezuelan manufacturing sector (2007)," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(34), pages 121-137, July-Dece.
    5. Marianne Matthee & Neil Rankin & Tasha Naughtin & Carli Bezuidenhout, 2016. "The South African manufacturing exporter story," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).
    6. Sharma, Chandan, 2018. "Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 46-62.
    7. Charoenrat, Teerawat & Harvie, Charles, 2014. "The efficiency of SMEs in Thai manufacturing: A stochastic frontier analysis," Economic Modelling, Elsevier, vol. 43(C), pages 372-393.

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