Constraints on Manufacturing Exports in Developing Countries | Firm Level Evidence from Selected African Economies

This study looked at the reason behind the low growth of exports in general and manufacturing exports in particular in selected African countries. It examined this and its policy implications from the perspective of micro-economic (firm level) data. The micro perspective is hailed by the argument often made that while appropriate macroeconomic policies are important in creating the pre-conditions for growth, they may not provide sufficient stimulus for the expansion of manufacturing export. The use of micro perspective is equally important because policies which improve efficiency at the firm-level may greatly enhance the potential for macroeconomic reforms to impact on overall performance in African economies. The study also sought to establish empirical support in the African context for the “learning by exporting hypothesis". Employing Ordinary Least Squares, Clerides, Lach and Tybout (CLT) and Non-Parametric Maximum Likelihood (NPML) techniques, the study found support for the hypothesis in Africa. The study recommends more investment in human resources as well as investment in Research and Development to boost TFP,increase efficiency and hence exports.