Export orientation and productivity in sub-Saharan Africa

Abstract

Analysis of firm-level panel data from three Sub-Saharan African economies shows that export manufacturers have an average total factor productivity premium of 17 percent. In addition to the effect on productivity levels, exporters enjoy productivity growth that is 10 percent faster than do nonexporters. The data do not allow testing of whether these premiums are because more efficient producers go into exporting or because of a process of learning-by-exporting. In thinking about the mechanisms behind selectivity and learning, however, our finding of higher premiums for direct exporters, and for those who export to areas outside of Africa, could be interpreted as being consistent with learning-by-exporting effects. © 2004 International Monetary Fund.