Foreign Direct Investment and Firm Level Productivity in Kenyan Manufacturing: A Panel Data Analysis

Geoffrey G. Gachino ()
Additional contact information
Geoffrey G. Gachino: College of Business Administration, University of Dubai

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2010, vol. 2, issue 1, 17-57

Abstract: This paper uses panel data to examine the effects of foreign presence on firm level productivity in the Kenyan manufacturing industry employing “traditional” and “recent” methodologies using the production function framework. The results show that foreign firms dominated in virtually all the economic activities, including productivity performance. The analysis of productivity determinants using a technologically profound approach produced a statistically significant role played by foreign presence on firm level productivity, thus supporting the occurrence of spillovers. The paper argues that the use of productivity based methodologies largely masks the nature, actual processes and mechanisms through which spillovers occur. The paper, therefore, advocates a “paradigm shift” in the spillover analysis techniques and recommends a broader approach with particular emphasis on technological innovations which takes into consideration learning, capability building and innovation.

Keywords: - FDI; foreign presence; spillovers; productivity; technological innovation (search for similar items in EconPapers)
JEL-codes: F2 L1 L6 O1 O3 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ijie.um.edu.my/RePEc/umk/journl/v2i1/a2.pdf (application/pdf)

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:umk:journl:v:2:y:2010:i:1:p:17-57

Access Statistics for this article

More articles in Institutions and Economies (formerly known as International Journal of Institutions and Economies) from Faculty of Economics and Administration, University of Malaya Contact information at EDIRC.
Bibliographic data for series maintained by Teoh Wern Jun ().