Firm-Level Investment and Exporting: New Empirical Evidence from Ghana and Tanzania

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dc.contributor.authorEsaku, Stephen
dc.contributor.authorKrugell, Waldo
dc.date.accessioned2022-08-31T13:49:46Z
dc.date.available2022-08-31T13:49:46Z
dc.date.issued2020
dc.description.abstractUsing firm-level data from two selected African countries, we examine whether firm-level investment in physical capital is a possible channel through which less productive firms gain entry into export markets. Our findings reveal that non-exporters who invest in physical capital increase their probability of switching status, from non-exporter to exporter, and we provide evidence that firm-level investment is correlated with increased productivity growth among exporters. Consequently, we emphasize that firm-level investment in physical capital enables non-exporters to increase their odds of entry to export markets and provides opportunity for young exporters to grow rapidly and persist long in export markets. Although firm productivity differences can be explained by self-selection factors as one channel, firm-level investment in physical capital provides another explanation as to why less productive firms gain entry into the export markets. We establish that when firms invest in physical capital, they improve their productive capacity thereby raising their productivity in the process. Export promotion policies should target providing support to firms that seek to upgrade or expand their production technology as this would stimulate the probability of export market entry hence promoting exports.en_US
dc.identifier.citationEsaku, S., & Krugell, W. (2020). Firm-level investment and exporting: New empirical evidence from Ghana and Tanzania. International Economic Journal, 34(1), 125-143.https://doi.org/10.1080/10168737.2019.1663440en_US
dc.identifier.urihttps://nru.uncst.go.ug/handle/123456789/4490
dc.language.isoenen_US
dc.publisherInternational Economic Journalen_US
dc.subjectFirm-level; investment; exporters; firm behaviour; firm performanceen_US
dc.titleFirm-Level Investment and Exporting: New Empirical Evidence from Ghana and Tanzaniaen_US
dc.typeArticleen_US
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