Firm Characteristics of Non-traditional Exporters in Ghana

Abstract

In this paper, firm-level panel data from Ghana is used to analyse the firm characteristics that are associated with exporting in the non-traditional agricultural and manufacturing sectors. The focus of the study is on the different relationships in different sectors. The findings show that the number of firms that specialise in exporting is relatively low. While for some sectors the high cost of imports reduces their likelihood to export, for others the use of high quality inputs facilitates exporting. The share of investment seems to have only a positive effect on exporting for agricultural processing. Based on this analysis the appropriateness of different export promotion measures is discussed. Dans cet article, des donn�es de panel au niveau de firmes du Ghana sont utilis�es pour analyser les caract�ristiques des firmes exportatrices dans les secteurs non traditionnels agricole et manufacturier. Cette �tude est centr�e sur les diff�rentes relations entre secteurs, ainsi les termes d'interaction entre variables muettes sectorielles et les caract�ristiques des firmes sont incluses dans l'analyse �conom�trique. Les r�sultats montrent que le nombre de firmes sp�cialis�es � l'exportation est faible. Les entreprises plus anciennes ou plus grandes ont une probabilit� plus forte d'exporter mais n'exportent pas une part plus importante de leur production. Alors que dans certains secteurs les co�ts �lev�s des importations r�duisent les chances d'exporter, dans d'autres l'utilisation d'intrants de qualit� facilite l'exportation.

International experience, commitment, distribution adaptation and performance: a study of Ghanaian firms in B2B export markets

“…In terms of SSA as a region, this is economically powerful, with recent estimates suggesting a total GDP of $1.5tn (World Bank, 2016). SSA comprises of 48 countries including Ghana that features in this current study where earlier research indicates foreign markets are likely to be the main opportunity for growth (Wolf, 2007;Babatunde, 2009). SSA countries nonetheless exhibit certain perceptual and institutional environments similar to other emerging and transitioning markets with an uneven development that may affect firms' performance at a micro level (Peng et al, 2009;Ahlstrom and Bruton, 2010).…”

“…For example, on the one hand, foreign multinationals are seeking ways to succeed in Africa and on the other hand, African firms are devising ways to foster growth, reduce unemployment, and succeed in international markets (Robson et al, 2012;Amankwah-Amoah et al, 2018;Narteh and Acheampong, 2018). Furthermore, from a policy makers' perspective, for some time, support providers in particular African countries noted concern about increasing their respective export performance as their share of global product exports kept falling (Wolf, 2007;Ghana Export Promotion Authority [GEPA], 2014). As such, this current study focusses on exporting firms' practices rather than those of multinational enterprises.…”

How Does Foreign Direct Investment Affect the Export Decisions of Firms in Ghana?

“…R&D spillovers, either from MNEs or domestic firms, do not appear to affect the likelihood of whether domestic firms become exporters. Using a survey containing panel data for 97 enterprises over a three‐year period from 2000 to 2002 in a Ghanaian study on the determinants of exports, Wolf (2007) found that firms with more foreign ownership tend to be less export oriented but rather serve the domestic market. She explained that this is driven mainly by the agricultural processing and plastic sectors, whereas in other sectors foreign ownership is associated with a higher probability to export.…”

“…We believe the ability of FDI to influence export activities would be a vital stimulant to the government to reduce bottlenecks and encourage more FDI inflows. Though Wolf (2007) recently examined the determinants of exports using a survey sample of 97 enterprises over a three‐year period, she found mixed evidence. Possible problems could be the relatively small sample size and the short time series of her dataset.…”

Export Behavior, Export Performance and International Marketing Strategy on Export Promotion of Small and Medium Enterprises: An International Trade Perspective in Developing Countries

“…In Sub-Saharan Africa, the researchers argue that most small and medium enterprises reside in the domestic market, and therefore, without export involvement, it will be unlikely to propel firms into growth. In Africa, in general, Rankin et al (2016), Kuada (2017) and Wolf (2017) reported that the overall international market of the continent is in its infant stage to propel firms' growth. Therefore, the issue of export promotion is getting a prior concern in bringing growth for SMEs.…”