A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
This technical note implements a firm-level productivity diagnostic using the census of manufacturing firms and a large services survey in Kenya. By using a number of stylized productivity indicators, we aim to identify the ability of Kenyan firms...
| Main Authors: | , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26580297/firm-level-productivity-diagnostic-kenya’s-manufacturing-services-sector http://hdl.handle.net/10986/24972 |
| Summary: | This technical note implements a
firm-level productivity diagnostic using the census of
manufacturing firms and a large services survey in Kenya. By
using a number of stylized productivity indicators, we aim
to identify the ability of Kenyan firms to grow. The
information presented in this diagnostic will help to
conduct evidence-based policy-making. Specifically,
implementing firm-level productivity diagnostics provide the
necessary information for (i) improving the targeting of
economic policies, (ii) enhancing their effectiveness, (iii)
making more accurate predictions of the effects of industry
shocks and policy reforms on the economy, and (iv)
understanding the behavior of macroeconomic variables by
tracking the evolution of variables at the firm-level. This
note shows that there is a lot of heterogeneity in firms’
attributes and performance, and this can potentially be
attributed to the presence of economic distortions that
affect the efficient allocation of resources across firms,
with the manufacturing sector showing a lackluster
performance compared to the services sector. Overall, the
findings highlight the importance of locating productivity
at the center of the competitiveness agenda as a key
instrument for employment creation and poverty reduction. |
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