Foreign Direct Investment and Firm Level Productivity in Kenyan Manufacturing: A Panel Data Analysis
This paper uses panel data to examine the effects of foreign presence on firm level productivity in the Kenyan manufacturing industry employing “traditional” and “recent” methodologies using the production function framework. The results show that foreign firms dominated in virtually all the economic activities, including productivity performance. The analysis of productivity determinants using a technologically profound approach produced a statistically significant role played by foreign presence on firm level productivity, thus supporting the occurrence of spillovers. The paper argues that the use of productivity based methodologies largely masks the nature, actual processes and mechanisms through which spillovers occur. The paper, therefore, advocates a “paradigm shift” in the spillover analysis techniques and recommends a broader approach with particular emphasis on technological innovations which takes into consideration learning, capability building and innovation.
Volume (Year): 2 (2010)
Issue (Month): 1 (April)
|Contact details of provider:|| Postal: |
Web page: http://ijie.um.edu.my
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:umk:journl:v:2:y:2010:i:1:p:17-57. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Professor Dr. Rajah Rasiah)
If references are entirely missing, you can add them using this form.