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Exports of African manufactures: macro policy and firm behaviour

Author

Listed:
  • Arne Bigsten
  • Paul Collier
  • Stefan Dercon
  • Marcel Fafcharnps
  • Bernard Gauthier
  • Jan Willern Gunning
  • Jean Habarurema
  • Anders Isaksson
  • Abena Oduro
  • Remco Oostendorp
  • Cathy Pattillo
  • Mans Soderborn
  • Francis Teal
  • Albert Zeufack

Abstract

Macro policy has changed the real exchange rates for African countries dramatically in the 1990s. In this paper the possible impact of macroeconomic policy on firms in the manufacturing sector is considered based on a panel survey of such firms in Cameroon. Kenya, Ghana and Zimbabwe. The data show that most large African manufacturing firms do export, but most do not specialize in exporting. An export equation is estimated both for the propensity of the firms to export and the percentage of output exported. It is shown that a stable export function can be estimated for all four countries over the three rounds of the survey. While there is no evidence that real devaluations have effected a general rise in manufactured exports there is evidence from the surveys of a rise in the percentage of output exported from the Cameroon. Reasons for the lack of a general response to macro policy are suggested. In the Cameroon, large firms did increase their propensity to export. Understanding the links between macro policy and firm performance may require an understanding of how such policies impact on different types of firms.

Suggested Citation

  • Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafcharnps & Bernard Gauthier & Jan Willern Gunning & Jean Habarurema & Anders Isaksson & Abena Oduro & Remco Oostendorp & Cathy Pattillo & Mans So, 1999. "Exports of African manufactures: macro policy and firm behaviour," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(1), pages 53-71.
    • Handle: RePEc:taf:jitecd:v:8:y:1999:i:1:p:53-71
    DOI: 10.1080/09638199900000005
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    References listed on IDEAS

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    1. Owens, Trudy & Wood, Adrian, 1997. "Export-oriented industrialization through primary processing?," World Development, Elsevier, vol. 25(9), pages 1453-1470, September.
    2. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    3. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    4. Adrian Wood & Kersti Berge, 1997. "Exporting manufactures: Human resources, natural resources, and trade policy," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 35-59.
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    Citations

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    Cited by:

    1. Elbadawi, Ibrahim & Mengistae, Taye & Zeufack, Albert, 2006. "Market access, supplier access, and Africa's manufactured exports : an analysis of the role of geography and institutions," Policy Research Working Paper Series 3942, The World Bank.
    2. 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-.
    3. Alan Harding & Måns Söderbom & Francis Teal, 2004. "Survival and Success among African Manufacturing Firms," Development and Comp Systems 0409046, University Library of Munich, Germany.
    4. Harrison, Ann E. & Lin, Justin Yifu & Xu, Lixin Colin, 2014. "Explaining Africa’s (Dis)advantage," World Development, Elsevier, vol. 63(C), pages 59-77.
    5. Christine Phillips & Seema Bhatia-Panthaki, 2007. "Enterprise development in Zambia: reflections on the missing middle," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(6), pages 793-804.
    6. Louise Grenier & Andrew McKay & Oliver Morrissey, 1998. "Determinants of Exports and Investment of Manufacturing Firms in Tanzania," Discussion Papers 98/5, University of Nottingham, CREDIT.
    7. 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.
    8. W.A. Naudéa & R. Oostendorp & P.A.E. Serumaga‐Zake, 2002. "South African Manufacturing In An African Context," South African Journal of Economics, Economic Society of South Africa, vol. 70(8), pages 1247-1272, December.
    9. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Soderbom & Francis Teal & Albert Zeu, 2004. "Do African Manufacturing Firms Learn from Exporting?," Journal of Development Studies, Taylor & Francis Journals, vol. 40(3), pages 115-141.
    10. Dirk Willem te Velde & Oliver Morrissey, 2003. "Spatial Inequality for Manufacturing Wages in Five African Countries," WIDER Working Paper Series DP2003-66, World Institute for Development Economic Research (UNU-WIDER).
    11. Janvier D. Nkurunziza, 2005. "Credit Can Precipitate Firm Failure: Evidence from Kenyan Manufacturing in the 1990s," Economics Series Working Papers WPS/2005-04, University of Oxford, Department of Economics.
    12. Coxhead, Ian A. & Foltz, Jeremy D. & Mogues, Tewodaj, 2012. "Does freer trade really lead to productivity growth? Evidence from Sub-Saharan Africa," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124958, Agricultural and Applied Economics Association.
    13. Ianchovichina, Elena & Gourdon, Julien & Kee, Hiau Looi, 2011. "Anatomy of nonoil export growth in the Middle East and North Africa region," Conference papers 332093, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. 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.
    15. Janvier D. Nkurunziza, 2005. "The Effect of Credit on Growth and Convergence of Firms in Kenyan Manufacturing," Economics Series Working Papers WPS/2005-01, University of Oxford, Department of Economics.
    16. Rankin, Neil A., 2001. "The export behaviour of South African manufacturing firms," MPRA Paper 16904, University Library of Munich, Germany.
    17. Krüger, Jens, 2009. "How do firms organize trade?: Evidence from Ghana," Kiel Advanced Studies Working Papers 449, Kiel Institute for the World Economy (IfW Kiel).

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