Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis

Kipkurui Josphat Kipsaat

doi:doi:10.11648/j.jbed.20190401.15

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Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis

Kipkurui Josphat Kipsaat

Published in Journal of Business and Economic Development (Volume 4, Issue 1)

Received: 21 February 2019 Accepted: 8 April 2019 Published: 20 May 2019

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Abstract

This paper examines the determinants of export intensity in Kenyan manufacturing firms. We use data from the World Bank enterprise survey 2013 and from it examine how firm characteristics explain export intensity. We use the Ordinary Least Squares estimation technique and Heckman sample selection model to estimate this relationship. The Heckman model is estimated in order to control for possible Sample Selection bias as export intensity is only observable in firms that make the decision to export. The findings show that innovation and certification are major determinants to export intensity as a unit change in these variables would result to a change in export intensity by 0.4747 units and 0.3259 respectively. Foreign firms are also found to export more as compared to domestic firms; the results show that the foreign owned firms export 0.5803 more units than domestic firms. This paper recommends that Kenyan firms should adopt internationally recognized certification standards in order for them to be more competitive in the international market and should embrace innovation by introducing new products and making improvements to their existing products; this can be achieved by investing more in research and development. These measures will increase firm export intensity leading to an overall increase in the country’s volume of exports leading to an improved balance of trade, a significant factor to overall economic growth. This paper therefore provides valuable information on how Kenyan manufacturing firms can increase the proportion of revenue received from engaging in international trade.

Published in	Journal of Business and Economic Development (Volume 4, Issue 1)
DOI	10.11648/j.jbed.20190401.15
Page(s)	31-37
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Export Intensity, Export Propensity, Firm Performance

References

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Kipkurui Josphat Kipsaat. (2019). Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. Journal of Business and Economic Development, 4(1), 31-37. https://doi.org/10.11648/j.jbed.20190401.15

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Kipkurui Josphat Kipsaat. Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. J. Bus. Econ. Dev. 2019, 4(1), 31-37. doi: 10.11648/j.jbed.20190401.15

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AMA Style

Kipkurui Josphat Kipsaat. Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. J Bus Econ Dev. 2019;4(1):31-37. doi: 10.11648/j.jbed.20190401.15

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@article{10.11648/j.jbed.20190401.15,
  author = {Kipkurui Josphat Kipsaat},
  title = {Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis},
  journal = {Journal of Business and Economic Development},
  volume = {4},
  number = {1},
  pages = {31-37},
  doi = {10.11648/j.jbed.20190401.15},
  url = {https://doi.org/10.11648/j.jbed.20190401.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20190401.15},
  abstract = {This paper examines the determinants of export intensity in Kenyan manufacturing firms. We use data from the World Bank enterprise survey 2013 and from it examine how firm characteristics explain export intensity. We use the Ordinary Least Squares estimation technique and Heckman sample selection model to estimate this relationship. The Heckman model is estimated in order to control for possible Sample Selection bias as export intensity is only observable in firms that make the decision to export. The findings show that innovation and certification are major determinants to export intensity as a unit change in these variables would result to a change in export intensity by 0.4747 units and 0.3259 respectively. Foreign firms are also found to export more as compared to domestic firms; the results show that the foreign owned firms export 0.5803 more units than domestic firms. This paper recommends that Kenyan firms should adopt internationally recognized certification standards in order for them to be more competitive in the international market and should embrace innovation by introducing new products and making improvements to their existing products; this can be achieved by investing more in research and development. These measures will increase firm export intensity leading to an overall increase in the country’s volume of exports leading to an improved balance of trade, a significant factor to overall economic growth. This paper therefore provides valuable information on how Kenyan manufacturing firms can increase the proportion of revenue received from engaging in international trade.},
 year = {2019}
}

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TY  - JOUR
T1  - Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis
AU  - Kipkurui Josphat Kipsaat
Y1  - 2019/05/20
PY  - 2019
N1  - https://doi.org/10.11648/j.jbed.20190401.15
DO  - 10.11648/j.jbed.20190401.15
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 31
EP  - 37
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20190401.15
AB  - This paper examines the determinants of export intensity in Kenyan manufacturing firms. We use data from the World Bank enterprise survey 2013 and from it examine how firm characteristics explain export intensity. We use the Ordinary Least Squares estimation technique and Heckman sample selection model to estimate this relationship. The Heckman model is estimated in order to control for possible Sample Selection bias as export intensity is only observable in firms that make the decision to export. The findings show that innovation and certification are major determinants to export intensity as a unit change in these variables would result to a change in export intensity by 0.4747 units and 0.3259 respectively. Foreign firms are also found to export more as compared to domestic firms; the results show that the foreign owned firms export 0.5803 more units than domestic firms. This paper recommends that Kenyan firms should adopt internationally recognized certification standards in order for them to be more competitive in the international market and should embrace innovation by introducing new products and making improvements to their existing products; this can be achieved by investing more in research and development. These measures will increase firm export intensity leading to an overall increase in the country’s volume of exports leading to an improved balance of trade, a significant factor to overall economic growth. This paper therefore provides valuable information on how Kenyan manufacturing firms can increase the proportion of revenue received from engaging in international trade.
VL  - 4
IS  - 1
ER  -

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Author Information

Kipkurui Josphat Kipsaat

School of Economics, University of Nairobi, Nairobi, Kenya

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Plain Text BibTeX RIS

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Kipkurui Josphat Kipsaat. (2019). Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. Journal of Business and Economic Development, 4(1), 31-37. https://doi.org/10.11648/j.jbed.20190401.15

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ACS Style

Kipkurui Josphat Kipsaat. Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. J. Bus. Econ. Dev. 2019, 4(1), 31-37. doi: 10.11648/j.jbed.20190401.15

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AMA Style

Kipkurui Josphat Kipsaat. Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis. J Bus Econ Dev. 2019;4(1):31-37. doi: 10.11648/j.jbed.20190401.15

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@article{10.11648/j.jbed.20190401.15,
  author = {Kipkurui Josphat Kipsaat},
  title = {Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis},
  journal = {Journal of Business and Economic Development},
  volume = {4},
  number = {1},
  pages = {31-37},
  doi = {10.11648/j.jbed.20190401.15},
  url = {https://doi.org/10.11648/j.jbed.20190401.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20190401.15},
  abstract = {This paper examines the determinants of export intensity in Kenyan manufacturing firms. We use data from the World Bank enterprise survey 2013 and from it examine how firm characteristics explain export intensity. We use the Ordinary Least Squares estimation technique and Heckman sample selection model to estimate this relationship. The Heckman model is estimated in order to control for possible Sample Selection bias as export intensity is only observable in firms that make the decision to export. The findings show that innovation and certification are major determinants to export intensity as a unit change in these variables would result to a change in export intensity by 0.4747 units and 0.3259 respectively. Foreign firms are also found to export more as compared to domestic firms; the results show that the foreign owned firms export 0.5803 more units than domestic firms. This paper recommends that Kenyan firms should adopt internationally recognized certification standards in order for them to be more competitive in the international market and should embrace innovation by introducing new products and making improvements to their existing products; this can be achieved by investing more in research and development. These measures will increase firm export intensity leading to an overall increase in the country’s volume of exports leading to an improved balance of trade, a significant factor to overall economic growth. This paper therefore provides valuable information on how Kenyan manufacturing firms can increase the proportion of revenue received from engaging in international trade.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Firm Characteristics and Export Intensity in Kenyan Manufacturing Firms: An Empirical Analysis
AU  - Kipkurui Josphat Kipsaat
Y1  - 2019/05/20
PY  - 2019
N1  - https://doi.org/10.11648/j.jbed.20190401.15
DO  - 10.11648/j.jbed.20190401.15
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 31
EP  - 37
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20190401.15
AB  - This paper examines the determinants of export intensity in Kenyan manufacturing firms. We use data from the World Bank enterprise survey 2013 and from it examine how firm characteristics explain export intensity. We use the Ordinary Least Squares estimation technique and Heckman sample selection model to estimate this relationship. The Heckman model is estimated in order to control for possible Sample Selection bias as export intensity is only observable in firms that make the decision to export. The findings show that innovation and certification are major determinants to export intensity as a unit change in these variables would result to a change in export intensity by 0.4747 units and 0.3259 respectively. Foreign firms are also found to export more as compared to domestic firms; the results show that the foreign owned firms export 0.5803 more units than domestic firms. This paper recommends that Kenyan firms should adopt internationally recognized certification standards in order for them to be more competitive in the international market and should embrace innovation by introducing new products and making improvements to their existing products; this can be achieved by investing more in research and development. These measures will increase firm export intensity leading to an overall increase in the country’s volume of exports leading to an improved balance of trade, a significant factor to overall economic growth. This paper therefore provides valuable information on how Kenyan manufacturing firms can increase the proportion of revenue received from engaging in international trade.
VL  - 4
IS  - 1
ER  -

Copy | Download