Firm‐level productivity and exporting in Uganda's manufacturing sector

Author:

Bbaale Edward

Abstract

PurposeThis paper aims to investigate firm‐level interactions between productivity and exporting in Uganda's manufacturing sector.Design/methodology/approachThe paper empirically tested two hypotheses that relate to the dynamic gains from trade and also have tended to dominate the literature; self‐selection and learning‐by‐exporting hypotheses. It employs proxies of self‐selection and learning‐by‐exporting obtained from indices of path dependence to fit maximum likelihood estimates of export behavior.FindingsThe results provide support for both hypotheses and it is also found that more experienced exporters reap more productivity gains from learning effects which is in line with the view that knowledge spillovers to exporting firms increase with the level of interaction in the global market place. Thus, learning‐by‐exporting is not a “short term” occurrence which takes place only in the first few years of entry in export markets after which it would fizzle out as a firm's exporting experience increases but rather, it is a cumulative process.Practical implicationsThis paper generates a number of insights that can guide policy makers in designing policies to promote firm productivity growth that is an engine of growth in the private sector and by extension, would fuel up overall economic growth and poverty reduction.Originality/valuePrevious studies on exports and growth in Uganda have been basically focused on macro‐data analysis; yet, promoting rapid expansion of manufactured exports may require more than just a good macroeconomic policy environment. This study fills the research gap by relating firm‐level productivity performance to the microeconomic environment in which manufacturing firms operate.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance,General Business, Management and Accounting

Cited by 6 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Imported inputs and exporting in the Africa’s manufacturing sector;World Journal of Entrepreneurship, Management and Sustainable Development;2019-02-21

2. Corruption and firm-level productivity: greasing or sanding effect?;World Journal of Entrepreneurship, Management and Sustainable Development;2018-04-11

3. Embodied technology transfer and learning by exporting in the Ethiopian manufacturing sector;Innovation and Development;2016-06-29

4. Innovation characteristics of formal manufacturing firms in Uganda;African Journal of Science, Technology, Innovation and Development;2014-09-03

5. Learning by Exporting: A Working Hypothesis;SSRN Electronic Journal;2012

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