Exports, Investment and Productivity Growth in Small Firms
A Firm-level Analysis from Tanzania and Ghana
Bibliographic Data
| ID | 21737505 |
|---|---|
| Authors | Stephen Esaku (0000-0002-2587-4092, Cavendish University Uganda, corresponding author) |
| Year | 2022 |
| Volume | 23 |
| Issue | 2 |
| Pages | 400-421 |
| Publication date | 2022-04-03 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of African Business (JOURNAL) |
| Journal identifiers | ISSN: 1522-8916 • E-ISSN: 1522-9076 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/15228916.2020.1838836 |
| OpenAlex | W3097349102 |
| Language | EN |
| Citations received | 1 |
| References cited | 30 |
This paper examines the effect of firm-level investment in capital on export entry and productivity growth among different firm size classes using matching and difference-in-differences techniques. We find that firm-level investment in capital reduces the burden of sunk costs of export market entry, thereby inducing small firms to enter export markets with ease and increase their productivity as a result of export market participation. New entrants who survive their first year of exporting also grow their investment levels to consolidate market share. We show that micro and small firms that initiate exporting are more likely to implement firm-level investment as well, one way of technology upgrading, to remain competitive in export markets. Moreover, firm-level investment helps small exporters to generate higher productivity once they engage in export markets. This may suggest that the observed market selection and growth of small firms could be the outcome of distinctive productivity improvements in these firms. We note that investing in capital, especially plant and equipment, may help micro and small firms improve their productive capacity to produce more output at lower unit costs as a result of low-marginal costs of production. Export-led growth policies should be directed at supporting micro and small firms access the much needed financing to upgrade their production processes and improve their productivity
Agricultural economics · Business · Developing country · Economic growth · Economics · Labour economics · Productivity · Socioeconomics · Tanzania · Firm Innovation and Growth · Global trade and economics · International Business and FDI
Plants and Productivity in International Trade
Trade Liberalization, Exports, and Technology Upgrading
Entry, Exit, and firm Dynamics in Long Run Equilibrium
Selection and the Evolution of Industry
A simple model of firm heterogeneity, international trade, and wages
Exceptional exporter performance
The Economics and Econometrics of Active Labor Market Programs
Do exports generate higher productivity? Evidence from Slovenia
R&D Investment, Exporting, and Productivity Dynamics
Estimating Production Functions Using Inputs to Control for Unobservables
The central role of the propensity score in observational studies for causal effects
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Statistics and Causal Inference
Why Some Firms Export
| Unique citing works | 1 |
|---|---|
| Citations per year | 0.25 |
| Citation span | 2022 - 2022 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |