Abstract
This study examines the effects of export spillovers in the manufacturing and service sectors of 19 sub-Saharan Africa (SSA) countries. We investigate whether the exporting probability of a domestic firm is influenced by the pool of nearby domestic and foreign-owned exporting firms. We adopt a multi-level estimation approach to control for heterogeneities due to country- and city-level effects. Results indicate that the exporting probability of a domestic manufacturing firm is positively associated with the pool of domestic exporting firms in the same industry and foreign-owned exporting firms in other industries. However, negative export spillovers are observed from foreign-owned exporters in the same industry and domestic exporters in other industries. In the service sector, we find positive spillovers from domestic exporters in the same industry. Policymakers in sub-Saharan Africa should encourage exporting domestic firms to agglomerate geographically by creating industrial zones and providing services to promote information exchange between exporting and non-exporting firms.
Original language | English (US) |
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Pages (from-to) | 40-51 |
Number of pages | 12 |
Journal | Quarterly Review of Economics and Finance |
Volume | 84 |
DOIs | |
State | Published - May 2022 |
Bibliographical note
Publisher Copyright:© 2022 Board of Trustees of the University of Illinois
Keywords
- Agglomeration
- Export spillovers
- Manufacturing firms
- Service sector
- Sub-Saharan Africa