Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria

Kanang Amos Akims () and Dianah Ngui
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Kanang Amos Akims: Department of Economics, University of Jos, Jos 930001, Nigeria

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2019, vol. 14, issue 3, 428-460

Abstract: This paper investigates how productivity influences firms' exports. Various firm characteristics are employed to test the self-selection hypothesis alongside the effects of firms' productivity on their share of exports in total sales. Using a pseudo-panel data set constructed from the firm-level data for the manufacturing sector in Nigeria, we find no evidence that higher productivity influences the decision on whether or not a firm would participate in exports. However, it is established that higher productivity increases the share of exports in total sales of firms that are already participating in foreign markets. A policy implication of our result is that Nigeria can realize a larger share of manufactured exports in total merchandise exports by directing efforts towards improving primarily the productivity of firms that are already involved in exports.

Keywords: productivity; self-selection; export performance; manufacturing sector (search for similar items in EconPapers)
JEL-codes: D24 F12 F14 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:14:y:2019:i:3:p:428-460

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