Publication: Domestic Constraints, Firm Characteristics, and Geographical Diversification of Firm-Level Manufacturing Exports in Africa
Date
2008-03
ISSN
Published
2008-03
Author(s)
Yoshino, Yutaka
Abstract
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.
Citation
“Yoshino, Yutaka. 2008. Domestic Constraints, Firm Characteristics, and Geographical Diversification of Firm-Level Manufacturing Exports in Africa. Policy Research Working Paper; No. 4575. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/63fb944a-ca76-57aa-8e2c-5c16543ddfb6 License: CC BY 3.0 IGO.”
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