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Has Low Productivity Constrained Competitiveness of African Firms? : Comparison of the Firm Performances with Asian Firms

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Listed:
  • Fukunishi, Takahiro
Abstract
It has been argued that poor productive performance is one of critical sources of stagnation of the African manufacturing sector, but firm-level empirical supports are limited. Using the inter-regional firm data of the garment industry, technical efficiency and its contribution to competitiveness measured as unit costs were compared between Kenyan and Bangladeshi firms. Our estimates indicated that there is no significant gap in the average technical efficiency of the two industries despite conservative estimation, although unit costs greatly differ between the two industries. Higher unit cost in Kenyan firms mainly stems from high labour cost, while impact of inefficiency is quite small. Productivity accounts little for the stagnation of garment industry in several African countries.

Suggested Citation

  • Fukunishi, Takahiro, 2007. "Has Low Productivity Constrained Competitiveness of African Firms? : Comparison of the Firm Performances with Asian Firms," IDE Discussion Papers 129, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper129
    as

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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38038&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2007
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    More about this item

    Keywords

    Technical efficiency; Allocative efficiency; Manufacturing; Sub-Saharan Africa; Productivity; Manufacturing industries; Kenya; Bangladesh; 技術効率; 配分効率; サハラ以南アフリカ; 生産性; 製造業; ケニア; バングラデシュ;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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