Title: Exporting raises productivity in sub-Saharan African manufacturing firms
Authors: Van Biesebroeck, Jo # ×
Issue Date: Dec-2005
Series Title: Journal of international economics vol:67 issue:2 pages:373-391
Abstract: Proponents of trade liberalization argue that exporting helps firms to achieve higher productivity levels. This hypothesis is examined for a panel of manufacturing firms in nine African countries. The results indicate that exporters in these countries are more productive and, more importantly, exporters increase their productivity advantage after entry into the export market. While the first finding can be explained by selection–only the most productive firms engage in exporting–the latter cannot. The results are robust when unobserved productivity differences and self-selection into the export market are controlled for using different econometric methods. Scale economies are shown to be an important channel for the productivity advance. Credit constraints and contract enforcement problems prevent firms that only produce for the domestic market from fully exploiting scale economies.
ISSN: 0022-1996
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Economics, Leuven - miscellaneous
× corresponding author
# (joint) last author

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