An empirical investigation of the policy determinants of the supply of manufactured exports: a case study of Kenya
Abstract
This study embarks on assessing and analyzing the policy
environment suitable for the promotion of Kenya's
manufactured exports to the industrialized world. It
observes that a mixture of both import substitution and
export promotional policies have been used to guide
industrial development since Independence in 1963.
In order to accomplish the objectives of this study, a
methodology involving an estimation of a well specified
supply model for Kenya's manufactured exports is adopted,
the results of which corroborate the theoretical arguments
put forward for the expansion of manufactured exports from
developing countries, i.e., that supply-side constraints
(domestic policy variables) explain better the performance
of these countries exports than demand-side variables.'
The estimated supply elasticities obtained in this study are
not only plausible, but compare well with other similar p
studies. All the elasticities have the correct positive sign
and their explanatory powers, except for the real exchange
rate, are significant:
The study concludes that domestic policy variables are
crucial to the performance of manufactured exports. The
policy implications that can be drawn to accommodate the
structural adjustment programme are those aimed at promoting
increased growth in manufacturing,and achieving effective
relative export prices.
Publisher
Department Development Economics, Dalhousie University Halifax, Nova scotia CANADA
Description
Master of Development Economics