Export Intensity and Manufacturing Firm Characteristics in Kenya
Abstract
This study of examines the influence that specific firm level characteristics have on export intensity
of Kenyan manufacturing firms. Three waves of panel data (2007, 2013 and 2018) from the World
Bank Enterprise Survey was used focusing on 410 manufacturing firms. The aim of the study is to
determine the factors influencing the growth of exports in the manufacturing sector which have
been proven to be the driver of growth a country’s exports. Due to possible sample selection bias,
Heckman selection model is used to preselect exporting firms which are only observable if a firm
is an exporting firm. The specified model is then estimated using the 2SLS estimation technique
which controls for suspected endogeneity and heterogeneity. The key findings showed a
statistically significant positive relationship between export intensity and skilled human capital as
well as innovation. Further, the results indicated that larger firms export more than smaller firms
due to efficiency and lower cost of production required for export purposes. The study concluded
that Kenya needs to rethink its exporting structure and provided policy recommendations aimed
at promoting growth of exports in the manufacturing sector and eventually the growth of the
country’s exports
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Economics [237]
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