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African Firms in the Global Economy

Author

Listed:
  • Arne Bigsten

    (Arne Bigsten is at the Department of Economics and Gothenburg Centre of Globalization and Development, University of Gothenburg, Sweden. E-mail: arne.bigsten@economics.gu.se.)

  • MÃ¥ns Söderbom

    (Måns Söderbom is at the Department of Economics, University of Gothenburg, Sweden. E-mail: mans.soderbom@economics.gu.se.)

Abstract

In this article we review the status of African manufacturing firms in the global economy. We discuss how the policies relevant for manufacturing performance have developed over four decades starting in the 1960s, and take stock of the actual performance of the sector. We examine the prospects for improved performance, using a historical benchmark and a comparative advantage frame-work, and document empirical evidence on the relationship between openness and firm performance drawing on African firm-level data. Finally we discuss what economic policies are required to support industrial growth.

Suggested Citation

  • Arne Bigsten & MÃ¥ns Söderbom, 2010. "African Firms in the Global Economy," Review of Market Integration, India Development Foundation, vol. 2(2-3), pages 229-253, August.
    • Handle: RePEc:sae:revmar:v:2:y:2010:i:2-3:p:229-253
    DOI: 10.1177/097492921000200303
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    References listed on IDEAS

    as
    1. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," The World Bank Research Observer, World Bank, vol. 21(2), pages 241-265.
    2. Holmes, Thomas J. & Jr., James A. Schmitz, 2001. "A gain from trade: From unproductive to productive entrepreneurship," Journal of Monetary Economics, Elsevier, vol. 47(2), pages 417-446, April.
    3. Arne Bigsten & Dick Durevall, 2008. "Factor Proportions, Openness and Factor Prices in Kenya 1965-2000," Journal of Development Studies, Taylor & Francis Journals, vol. 44(2), pages 289-310.
    4. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 903-947.
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