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A Firm-Level Productivity Diagnostic for Kenya's Manufacturing and Services Sector / Ana Cusolito.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Cusolito, Ana.
- Series:
- Investment Climate Assessment
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Competitiveness and Competition Policy.
- Export Development and Competitiveness.
- Financial and Private Sector Development.
- Macroeconomics and Economic Growth.
- Micro, Small and Medium Enterprise Support.
- Microenterprises.
- Private Sector Development.
- Regulation and Competition Policy.
- Small and Medium Size Enterprises.
- Technology Diffusion.
- Trade and Integration.
- Local Subjects:
- Competitiveness and Competition Policy.
- Export Development and Competitiveness.
- Financial and Private Sector Development.
- Macroeconomics and Economic Growth.
- Micro, Small and Medium Enterprise Support.
- Microenterprises.
- Private Sector Development.
- Regulation and Competition Policy.
- Small and Medium Size Enterprises.
- Technology Diffusion.
- Trade and Integration.
- Physical Description:
- 1 online resource (1 pages)
- Place of Publication:
- Washington, D.C. : The World Bank, 2016.
- System Details:
- data file
- 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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