Factors that Influence Global Value Chains: Evidence from the Manufacturing Sector in Kenya

Bethuel Kinyanjui Kinuthia

Working Papers from African Economic Research Consortium

Abstract: This study investigates the determinants of GVCs participation among manufacturing firms in Kenya. Using the propensity matching method and firm-level cross-sectional data from the World Bank Enterprise Survey (WBES) for the period 20072018, the analysis identifies key determinants across the entire manufacturing sector. These determinants are labour productivity, foreign ownership, firm size, website presence, generator use, and transport costs. Additional factors depend on the specific GVC definition applied. The study also reveals that smaller and female owned firms are more susceptible to business environment factors such as security, corruption, and competition with the informal sector compared to larger and male owned counterparts. Furthermore, the study examines factors that influence GVCs participation in the food and chemical sectors, highlighting sector-specific factors which can result in tailored policy recommendations.

Date: 2024-11-27
Note: African Economic Research Consortium
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