Template-type: ReDIF-Paper 1.0
Author-Name: Rasiah, Rajah
Author-Email: rasiah@intech.unu.edu
Author-Workplace-Name: United Nations University, Institute for New Technologies
Author-Name: Gachino, Geoffrey
Author-Email: gachino@intech.unu.edu
Author-Workplace-Name: United Nations University, Institute for New Technologies
Title: Are Foreign Firms More Productive, and Export and Technology Intensive, than Local Firms 
	in Kenyan Manufacturing? 
Abstract: This paper uses firm level survey data to examine productivity, and export, skills and technological
	 intensities between foreign and local firms in Kenyan food and beverages, metal engineering, and textile
	 and garment. Foreign firms enjoyed statistically highly significant higher labour productivity means than
	 local firms in textile and garment manufacturing. Foreign firms were also more export and technology
	 intensive than local firms in textile and garment (process technology and R&D), and metal engineering (HR).
	 Foreign firms' enjoyed higher and statistically significant skills and overall technology (HR and R&D)
	 means than local firms in food and beverage. The econometric exercise showed that foreign ownership enjoyed
	 a statistically significant and positive relationship with overall technological and HR intensities.
	 Against labour productivity, the coefficient of technology index was higher in the foreign firms' sample
	 than in the local firms' sample. Local firms enjoyed higher value added in domestic than export markets.
	 Export-intensity enjoyed a positive relationship in the process technology regressions, but an inverse
	 relationship in the HR regressions in the foreign firms' sample. Overall, the significant Kenyan results
	 suggest that foreign firms' technology, productivity and export-intensity levels in economies with weak
	 institutions tend to be superior to local firms. 
Keywords: Ownership, Productivity, Exports, Technology, Manufacturing Industry, Kenya
Series: Discussion Paper
Creation-Date: 2004
Number: 10
File-URL: http://www.intech.unu.edu/publications/discussion-papers/2004-10.pdf
File-Format: application/pdf
File-Size: 228 Kb
Handle: RePEc:unm:unuint:200410