Export Participation and Technical Efficiency in East African Manufacturing Firms
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Date
2010
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Abstract
The study analyzed two explanations for the positive association between export-participation status and efficiency, i.e., self-selection of the relatively more efficient firms into exporting, and learning-byexporting. Measures of firm-level efficiency using Data Envelopment Analysis (DEA) were estimated to investigate the relationship between export participation and firm-level efficiency. As a result of the binary nature of the export participation, probit technique w as used to estimate the export participation equation. No evidence of self-selection by the relatively more efficient firms into-exporting was found, as lagged efficiency does not affect the probability of exporting in East African manufacturing firms. One explanation is that factors other than technical efficiency may be playing a more prominent role as determinants of the export decision in East African manufacturing firms.
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http://www.airitilibrary.com/Publication/alDetailedMesh?docid=2042485X-201003-201009060070-201009060070-62-68
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Aggrey, N., Eliab, L. and Joseph, S., 2010. Export Participation and Technical Efficiency in East African Manufacturing Firms. Current Research Journal of Economic Theory, 2(2), pp.62-68.