Export Orientation and Productivity in Sub-Saharan Africa

IMF Working Papers, May 1, 2002

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Export Orientation and Productivity in Sub-Saharan Africa

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Bibliographic details

• Authors: Catherine A Pattillo, Taye Mengistae
• Published: May 1, 2002
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451851298.001

Summary findings

• Analysis of firm-level panel data from three sub-Saharan African economies shows that exporting manufacturers have a total factor productivity premium of 11-28 percent.
• The data do not allow testing of whether these premiums are caused by selection of more efficient producers into exporting or by learning-by-exporting.
• Higher premiums are observed for direct exporters and exporters to outside Africa.

Interpretation and mechanisms

• The observed higher premiums for direct exporters and exporters to outside Africa could be interpreted as being consistent with learning-by-exporting effects when mechanisms behind selectivity and learning are considered.
• If learning-by-exporting is indeed present in the data, its effect on productivity cannot be disentangled from those of more traditionally recognized channels of international technology diffusion.

Data limitations and analytical scope

• Firm-level panel data from three sub-Saharan African economies were used.
• The available data do not permit causal testing to distinguish selection into exporting from learning-by-exporting.

Policy-relevant implications (inferred from findings)

• Export orientation is associated with measurable productivity premiums (11-28 percent) among manufacturing firms in the sample economies.
• Policies that facilitate firms’ ability to export directly and to access markets outside Africa may be associated with higher productivity premiums, though causality between exporting and productivity cannot be established with the available data.
• Consideration of multiple channels of international technology diffusion is necessary when designing policies aimed at leveraging export linkages for productivity gains.

IMF Working Paper summary: "Export Orientation and Productivity in Sub-Saharan Africa" by Catherine A Pattillo and Taye Mengistae (May 1, 2002).

Content in this bundle

• Export Orientation and Productivity in Sub-Saharan Africa - WP/02/89
  • Export Orientation and Productivity in Sub-Saharan Africa - WP/02/89 (Markdown version)
  • Export Orientation and Productivity in Sub-Saharan Africa - WP/02/89 (PDF)