Infrastructure quality and manufacturing exports in Africa: A firm-level analysis

Abstract

Using bilateral trade flow models, a body of empirical work has documented how geography and infrastructure variables affect trade performance. However, in this paper, we apply censored regression models like the Tobit and Probit on firm-level manufacturing data from 10 African countries, and results suggest that inadequate infrastructure in the form of customs, transport, electricity and water negatively affects export intensity and participation. Owning a generator and private water source also appear to have a significant impact on exports. This, therefore, means that firms can minimise the impact of power and water disruption on production, and hence trade by installing these alternative energy and water sources. © 2012 The Author. Journal compilation © 2012 Economic Society of South Africa.