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Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa


  • Yoshino, Yutaka


Using firm-level data on manufacturing sectors in Africa, this paper addresses how domestic supply constraints and other firm characteristics explain the geographical orientation of firms'exports and the overall market diversification of African manufacturing exports. The degree of market diversification, measured by the number of export destinations, is highly correlated with export intensity at the firm level, and both embody strong scale effects. Technological factors, such as new vintage capital and Internet access, which improve production efficiency and lower export costs, show strong effects on the firm-level export intensity. Some qualitative differences exist between Africa's regional exports and exports to the global markets. Foreign ownership is a significant factor in characterizing the intensity of global exports but not regional exports. The technological factors are significant in both cases, but more so in global exports. Public infrastructure constraints, such as inferior power services and customs delays, seem to have more immediate impacts on regional exports in general, implying the relevance of addressing behind-the-border constraints in fostering regional integration in Africa. Customs efficiency does matter for textile exports to the global markets, underscoring the importance of improving trade facilitation in Africa for competitive participation of African producers in global supply chain industries.

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  • Yoshino, Yutaka, 2008. "Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa," Policy Research Working Paper Series 4575, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4575

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    References listed on IDEAS

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    Cited by:

    1. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    2. Newman, Carol & Page, John & Rand, John & Shimeles, Abebe & Soderbom, Mans & Tarp, Finn (ed.), 2016. "Manufacturing Transformation: Comparative Studies of Industrial Development in Africa and Emerging Asia," OUP Catalogue, Oxford University Press, number 9780198776987.
    3. Iwanow, Tomasz & Kirkpatrick, Colin, 2009. "Trade Facilitation and Manufactured Exports: Is Africa Different?," World Development, Elsevier, vol. 37(6), pages 1039-1050, June.
    4. Page, John, 2012. "Aid, Structural Change and the Private Sector in Africa," WIDER Working Paper Series 021, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:unu:wpaper:wp2012-21 is not listed on IDEAS
    6. Agénor, Pierre-Richard, 2010. "A theory of infrastructure-led development," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 932-950, May.
    7. Nora Aboushady & Chahir Zaki, 2016. "Investment Climate and Firms’ Exports in Egypt: When Politics Matter," Working Papers 1071, Economic Research Forum, revised 12 2016.
    8. World Bank, 2009. "An Assessment of the Investment Climate in Uganda," World Bank Other Operational Studies 12249, The World Bank.
    9. Witold Czubala & Ben Shepherd & John S. Wilson, 2009. "Help or Hindrance? The Impact of Harmonised Standards on African Exports †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(5), pages 711-744, November.
    10. Goedhuys, Micheline & Sleuwaegen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," International Business Review, Elsevier, vol. 25(6), pages 1344-1355.
    11. Page, John & Soderbom, Måns, 2012. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    12. Alia Didier Yelognisse, 2015. "Geographical Orientation of Export in Manufacturing Sector in Sub-Sahara Africa," Global Economy Journal, De Gruyter, vol. 15(3), pages 337-351, September.
    13. repec:unu:wpaper:wp2012-94 is not listed on IDEAS
    14. Page, John, 2014. "Industrial policy in practice: Africa.s Presidential Investors. Advisory Councils," WIDER Working Paper Series 117, World Institute for Development Economic Research (UNU-WIDER).
    15. Andres,Luis Alberto & Biller,S. A. Dan & Herrera Dappe,Matias, 2014. "Infrastructure gap in South Asia : infrastructure needs, prioritization, and financing," Policy Research Working Paper Series 7032, The World Bank.
    16. Clarke, George, 2012. "Manufacturing firms in Africa: Some stylized facts about wages and productivity," MPRA Paper 36122, University Library of Munich, Germany.
    17. Page, John, 2011. "Should Africa Industrialize?," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    18. Cuong Le Van & Çağrı Sağlam & Agah Turan, 2016. "Optimal Growth Strategy under Dynamic Threshold," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(6), pages 979-991, December.
    19. Moyo, Busani, 2013. "Power infrastructure quality and manufacturing productivity in Africa: A firm level analysis," Energy Policy, Elsevier, vol. 61(C), pages 1063-1070.
    20. Rana Hendy & Chahir Zaki, 2014. "Trade Facilitation and Firms Exports: The Case of Egypt," Working Papers 843, Economic Research Forum, revised Oct 2014.

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    Economic Theory&Research; Microfinance; Free Trade; Debt Markets; Markets and Market Access;

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