Darko, C., Occhiali, G. and Vanino, E. orcid.org/0000-0002-4740-1501 (2021) The Chinese are here : import penetration and firm productivity in sub-Saharan Africa. Journal of Development Studies, 57 (12). pp. 2112-2135. ISSN 0022-0388
Abstract
This study presents the first micro-level analysis of the causal effect of Chinese import penetration on firm productivity in 24 sub-Saharan Africa (SSA) countries. We make key contributions to the literature by examining the heterogeneous effects of Chinese imports on firm productivity using data on transport infrastructure, and by distinguishing between import competition and import of intermediate inputs. Two instrumental variables, one based on exogenous geographic characteristic of ports and transportation technology shock, and the other based on a supply-side shock, are constructed to address the endogeneity of import penetration. The results indicate that imports from China impact positively on firm productivity, mainly through imports of intermediate inputs, and there is significant heterogeneity of these effects in terms of firms’ proximity to ports and initial productivity level. Overall, our findings suggest that Chinese imports could be viewed as an opportunity for Sub-Sahara Africa firms to enhance their productivity. Furthermore, they highlight the need for developing countries to invest in transport infrastructure to effectively promote firms participation in international markets.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. |
Keywords: | import penetration; productivity heterogeneity; trade infrastructure; sub-Saharan Africa; China |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 21 Jul 2021 06:31 |
Last Modified: | 09 Mar 2022 13:41 |
Status: | Published |
Publisher: | Taylor & Francis |
Refereed: | Yes |
Identification Number: | 10.1080/00220388.2021.1956468 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:176281 |
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