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Abstract
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Article Information:
Determinants of Export Participation in East African Manufacturing Firms
Niringiye Aggrey, Luvanda Eliab and Shitundu Joseph
Corresponding Author: Niringiye Aggrey
Submitted: 2010 January, 14
Accepted: 2010 January, 25
Published: 2010 March, 10 |
Abstract:
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The main objective of this study was to analyze the determinants of export participation of
manufacturing firms in East Africa. In order for East African manufacturing firms to achieve global
competitiveness, they need to have an indication of the factors that influence their export participation.
Regression results using probit estimation procedure indicate that capital, foreign ownership, education level
of the manager and training in Uganda, capital, training of workers and proportion of unskilled workers in
Kenya, and firm size and foreign ownership in Tanzania, positively influences export participation of
manufacturing firms. To promote exports, Tanzania should design strategies to grow small firms into large ones
using measures such as loan guarantee schemes for small and medium firms, tax holidays for joint ventures and
mergers, etc. The Ugandan and Kenyan government should also provide incentives for capital imports such as
maintaining the current zero rating of capital imports. Lastly, Ugandan and Tanzanian government should
design strategies aimed at attracting foreign direct investment, such as improving economic productivity
through the provision of infrastructure and labour force training.
Key words: Export participation, foreign ownership, manufacturing firms, , , ,
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Cite this Reference:
Niringiye Aggrey, Luvanda Eliab and Shitundu Joseph, . Determinants of Export Participation in East African Manufacturing Firms. Current Research Journal of Economic Theory, (2): Page No: 55-61.
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ISSN (Online): 2042-485X
ISSN (Print): 2042-4841 |
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