Embodied technology transfer and learning by exporting in the Ethiopian manufacturing sector

Abdi Yuya Ahmad and Keun Lee ()

Innovation and Development, 2016, vol. 6, issue 2, 281-303

Abstract: This paper examined the role of imported inputs, new capital goods and exporting on firm performance using micro data collected over 2000–2011 from manufacturing firms with 10 and above permanent employees in Ethiopia. Performance was measured in terms of labour productivity, total factor productivity (TFP) and TFP catch-up. In this paper, we argue that technologies embodied in imported inputs and new capital goods and export orientation are the crucial sources of learning and innovation, which enhance performance of firms in less-developed countries. The hypotheses developed along this argument were econometrically tested by applying a dynamic panel data technique. Results indicate that exporting, greater use of imported inputs and new capital goods significantly improved the productivity and TFP catch-up of firms. The positive productivity effects of imported inputs and new capital goods appeared to be higher for exporters than non-exporters. New capital goods were seen to play a greater role in embodied technology transfer than imported inputs. The findings generally suggest that improving access to imported inputs, encouraging investment in new capital goods and strengthening export orientation among manufacturing firms can help accelerate technology transfer and build local innovation capabilities towards Ethiopia’s desired structural transformation.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/2157930X.2016.1197330 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:riadxx:v:6:y:2016:i:2:p:281-303

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/riad20

DOI: 10.1080/2157930X.2016.1197330

Access Statistics for this article

Innovation and Development is currently edited by K J Joseph (Editor-in-chief), Cristina Chaminade, Gabriela Dutrénit, Judith Sutz, Tim Turpin and Susan Cozzens

More articles in Innovation and Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().