Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria

Kanang Amos Akims; Dianah Mukwate Ngui

doi:10.3868/s060–008–019–0019–0

Front. Econ. China ›› 2019, Vol. 14 ›› Issue (3) : 428 -460. DOI: 10.3868/s060–008–019–0019–0

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Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria

Kanang Amos Akims ¹
, Dianah Mukwate Ngui ²

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Abstract

This paper investigates how productivity influences firms’ exports. Various firm characteristics are employed to test the self-selection hypothesis alongside the effects of firms’ productivity on their share of exports in total sales. Using a pseudo-panel data set constructed from the firm-level data for the manufacturing sector in Nigeria, we find no evidence that higher productivity influences the decision on whether or not a firm would participate in exports. However, it is established that higher productivity increases the share of exports in total sales of firms that are already participating in foreign markets. A policy implication of our result is that Nigeria can realize a larger share of manufactured exports in total merchandise exports by directing efforts towards improving primarily the productivity of firms that are already involved in exports.

Keywords

productivity / self-selection / export performance / manufacturing sector

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Kanang Amos Akims, Dianah Mukwate Ngui. Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria. Front. Econ. China, 2019, 14(3): 428-460 DOI:10.3868/s060–008–019–0019–0