The Impact of Devaluation on Productivity of Exporting Firms

Mezid Keraga ()
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Mezid Keraga: Addis Ababa University

Economics Bulletin, 2021, vol. 41, issue 3, 2055-2062

Abstract: This study is designed to empirically establish the impact of devaluation on firms' productivity. The data comes from four waves of the annual survey of Ethiopian Large and Medium Scale Manufacturing Firms (LMSM). We applied control function estimation methods for estimating the production function. The main findings of the study are that there is no strong evidence that devaluation has a positive impact on the total factor productivity of exporting firms. However, the results indicate that less import-dependent but export-oriented firms improve their competitiveness in the post-devaluation period.

Keywords: Devaluation; Productivity; Exports; Control function estimator (search for similar items in EconPapers)
JEL-codes: B4 D2 (search for similar items in EconPapers)
Date: 2021-09-18
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