IDEAS home Printed from https://ideas.repec.org/p/csa/wpaper/2000-16.html
   My bibliography  Save this paper

Exports and firm-level efficiency in African manufacturing

Author

Listed:
  • Arne Bigsten
  • Paul Collier
  • Stefan Dercon
  • Marcel Fafchamps
  • Bernard Gauthier
  • Jan Willem Gunning
  • Jean Habarurema
  • Abena Oduro
  • Remco Oostendorp
  • Catherine Pattillo
  • Måns Söderbom
  • Francis Teal
  • Albert Zeufack

Abstract

In this paper, we use firm-level panel data for the manufacturing sector in four African countries to estimate the effect of exporting on efficiency. Measures of firm-level efficiency using stochastic production frontier models are constructed for the period 1992 to 1995. We find that there are large efficiency gains from exporting both in terms of levels and growth, and contrary to China, the gains are largest for the new entrants to exporting. We control for unobserved heterogeneity using a dynamic model with correlated random effects. Results are robust and consistently, we find evidence of a learning-by-exporting effect as well as self-selection of the most efficient firms into exporting. The effect of exporting on efficiency appears to be larger in this African sample than in comparable studies of other regions which is consistent with the smaller size of domestic markets.

Suggested Citation

  • Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Jean Habarurema & Abena Oduro & Remco Oostendorp & Catherine Pattillo & Måns Söderbom & Francis, 2000. "Exports and firm-level efficiency in African manufacturing," CSAE Working Paper Series 2000-16, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2000-16
    as

    Download full text from publisher

    File URL: https://ora.ox.ac.uk/objects/uuid:6d3c5911-2252-4874-9d2a-a8bac2a99535
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mark J. Roberts & James R. Tybout, 1991. "Size Rationalization and Trade Exposure in Developing Countries," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 169-200, National Bureau of Economic Research, Inc.
    2. Nishimizu, Mieko & Page, John M, Jr, 1982. "Total Factor Productivity Growth, Technological Progress and Technical Efficiency Change: Dimensions of Productivity Change in Yugoslavia, 1965-78," Economic Journal, Royal Economic Society, vol. 92(368), pages 920-936, December.
    3. Richard E. Caves, 1992. "Industrial Efficiency in Six Nations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031930, February.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Noel Uri, 2001. "Telecommunications in the United States and Changing Productive Efficiency," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 321-335, September.
    3. Kerstens, Kristiaan & Van de Woestyne, Ignace, 2014. "Comparing Malmquist and Hicks–Moorsteen productivity indices: Exploring the impact of unbalanced vs. balanced panel data," European Journal of Operational Research, Elsevier, vol. 233(3), pages 749-758.
    4. Liu, Lili, 1991. "Entry-exit, learning, and productivity change : evidence from Chile," Policy Research Working Paper Series 769, The World Bank.
    5. Figge, Frank & Hahn, Tobias & Barkemeyer, Ralf, 2014. "The If, How and Where of assessing sustainable resource use," Ecological Economics, Elsevier, vol. 105(C), pages 274-283.
    6. Pinelopi K. Goldberg & Nina Pavcnik, 2001. "Trade Protection and Wages: Evidence from the Colombian Trade Reforms," NBER Working Papers 8575, National Bureau of Economic Research, Inc.
    7. Md Aslam Mia & V. G. R. Chandran, 2016. "Measuring Financial and Social Outreach Productivity of Microfinance Institutions in Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 505-527, June.
    8. Dietrich, Jan Philipp & Schmitz, Christoph & Müller, Christoph & Fader, Marianela & Lotze-Campen, Hermann & Popp, Alexander, 2012. "Measuring agricultural land-use intensity – A global analysis using a model-assisted approach," Ecological Modelling, Elsevier, vol. 232(C), pages 109-118.
    9. Walter Briec & Laurence Lasselle, 2022. "On some relations between a continuous time Luenberger productivity indicator and the Solow model," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 484-502, April.
    10. Thijs ten Raa & Pierre Mohnen, 2009. "Competition and Performance: The Different Roles of Capital and Labor," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 20, pages 371-388, World Scientific Publishing Co. Pte. Ltd..
    11. Fukuyama, Hirofumi, 1997. "Investigating productive efficiency and productivity changes of Japanese life insurance companies," Pacific-Basin Finance Journal, Elsevier, vol. 5(4), pages 481-509, September.
    12. Soderbom, Mans & Teal, Francis, 2004. "Size and efficiency in African manufacturing firms: evidence from firm-level panel data," Journal of Development Economics, Elsevier, vol. 73(1), pages 369-394, February.
    13. Kwaku Ohene-Asare & Jones Kofi Anyimadu Asare & Charles Turkson, 2019. "Dynamic cost productivity and economies of scale of Ghanaian insurers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 148-177, January.
    14. Thijs Raa, 2008. "Debreu’s coefficient of resource utilization, the Solow residual, and TFP: the connection by Leontief preferences," Journal of Productivity Analysis, Springer, vol. 30(3), pages 191-199, December.
    15. Thomas Bolli & Mehdi Farsi, 2015. "The dynamics of productivity in Swiss universities," Journal of Productivity Analysis, Springer, vol. 44(1), pages 21-38, August.
    16. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
    17. Fernandes, Ana M., 2007. "Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries," Journal of International Economics, Elsevier, vol. 71(1), pages 52-71, March.
    18. Ceha, Rakhmat & Ohta, Hiroshi, 2000. "Productivity change model in the airline industry: A parametric approach," European Journal of Operational Research, Elsevier, vol. 121(3), pages 641-655, March.
    19. Kalonga Stambuli, 2002. "Political Change, Economic Transition and Catalysis of IMF and World Bank Models - the case of Malawi," Macroeconomics 0211003, University Library of Munich, Germany.

    More about this item

    Keywords

    2000;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csa:wpaper:2000-16. 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: . General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Julia Coffey (email available below). General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.