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Trade Liberalization, Firm Performance and Technology Upgrading in Tanzania

In: The Technological Response to Import Liberalization in SubSaharan Africa

Author

Listed:
  • Sonali Deraniyagala
  • Haji H. H. Semboja

Abstract

After nearly two decades of trade restrictions, Tanzania launched a series of trade liberalization measures in the mid 1980s. Economic and manufacturing growth, which had collapsed in the ‘crisis years’ prior to liberalization, recovered modestly thereafter. This chapter examines the extent to which manufacturing firms responded technologically to trade liberalization, and whether their performance in the post-liberalization period can be explained in terms of their relative technological efforts and capabilities. It also sheds light on micro-level supply-side factors that determined the capacity of firms to upgrade technology and improve economic performance under the conditions of trade liberalization. The analysis deals with two subsectors — engineering and garments — and is based on a cross-section survey of 65 firms.

Suggested Citation

  • Sonali Deraniyagala & Haji H. H. Semboja, 1999. "Trade Liberalization, Firm Performance and Technology Upgrading in Tanzania," Palgrave Macmillan Books, in: Sanjaya Lall (ed.), The Technological Response to Import Liberalization in SubSaharan Africa, chapter 4, pages 112-147, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-14852-3_4
    DOI: 10.1007/978-1-349-14852-3_4
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    Citations

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    Cited by:

    1. Wignaraja, Ganeshan, 2008. "Foreign ownership, technological capabilities and clothing exports in Sri Lanka," Journal of Asian Economics, Elsevier, vol. 19(1), pages 29-39, February.
    2. Gebreeyesus, Mulu & Mohnen, Pierre, 2013. "Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster," World Development, Elsevier, vol. 41(C), pages 302-316.
    3. Gebreeyesus, Mulu, 2009. "Innovation and Microenterprises Growth in Ethiopia," MERIT Working Papers 2009-053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Iammarino, Simona & Padilla-Pérez, Ramon & von Tunzelmann, Nick, 2008. "Technological Capabilities and Global-Local Interactions: The Electronics Industry in Two Mexican Regions," World Development, Elsevier, vol. 36(10), pages 1980-2003, October.
    5. Peerally, Jahan Ara & Cantwell, John A, 2012. "Changes in Trade Policies and the Heterogeneity of Domestic and Multinational Firms’ Strategic Response: The Effects on Firm-Level Capabilities," World Development, Elsevier, vol. 40(3), pages 469-485.
    6. Molina-Domene, María A. & Pietrobelli, Carlo, 2012. "Drivers of technological capabilities in developing countries: An econometric analysis of Argentina, Brazil and Chile," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 504-515.
    7. Paul Robson & Helen Haugh & Bernard Obeng, 2009. "Entrepreneurship and innovation in Ghana: enterprising Africa," Small Business Economics, Springer, vol. 32(3), pages 331-350, March.

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