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Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms

Author

Listed:
  • Neil Foster-McGregor

    (The Vienna Institute for International Economic Studies, wiiw)

  • Anders Isaksson
  • Florian Kaulich
Abstract
Our study extends the recent literature on the importer-productivity relationship to a firm-level dataset for sub-Saharan Africa. Using a cross-section sample of 3090 firms in 19 countries, we find that importers are more productive than non-importers. The observed importer premium is found to be robust to firm-specific characteristics and to a number of alternative estimation methods. Furthermore, we examine the importance of absorptive capacity in enhancing the benefits from importing. Using recently developed quantile threshold regression methods, we find that higher levels of absorptive capacity, as measured by human capital, are associated with a stronger relationship between importing and productivity.

Suggested Citation

  • Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2013. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms," wiiw Working Papers 105, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:105
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    References listed on IDEAS

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    Cited by:

    1. Luke Emeka Okafor & Mita Bhattacharya & Harry Bloch, 2017. "Imported Intermediates, Absorptive Capacity and Productivity: Evidence from Ghanaian Manufacturing Firms," The World Economy, Wiley Blackwell, vol. 40(2), pages 369-392, February.
    2. Hoedoafia, Mabel Akosua, 2020. "On the Link between Trade Liberalization and Firm Productivity: Panel Data Evidence from Private Firms in Ghana," MPRA Paper 99568, University Library of Munich, Germany.
    3. Pablo Blanchard & Adriana Peluffo & Dayna Zaclicever, 2019. "Revisando el rol de los productos intermedios importados en la productividad: un análisis a nivel de empresa para Uruguay," Documentos de Trabajo (working papers) 19-03, Instituto de Economía - IECON.

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    More about this item

    Keywords

    importing; productivity; sub-Saharan Africa; absorptive capacity; human capital;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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