70 Records out of 22207 Records

Performance and dynamics of African firms : a comparative analysis of garment firms in Kenya and Bangladesh

Author: Fukunishi, T

Awarding University: University of London, England

Level : PhD

Year: 2013

Holding Libraries: Institute of Commonwealth Studies, England ;

Subject Terms: Labour ; Exports ; Clothing industry ; Labour economics ; Bangladesh ;

Abstract:

This thesis attempts to understand the causes behind the stagnation of the African manufacturing sector based on comparative case studies. We specifically compare the garment industries in Kenya and Bangladesh, which have similar endowments including income per capita and business environment, but contrast in the development of the typical labour-intensive industry. Our comparison between countries with similar endowments simplifies the causes of the divergent performance, since it effectively controls possible reverse causation. Additionally, the focus on a labour-intensive industry demonstrates obstacles at the early stage of industrialisation. The fact that the Kenyan industry had growth opportunity in the period of analysis, from 2002 to 2008, makes the comparison meaningful. Using firm data and in-depth interviews, the comparison is based on a microeconomic perspective so that it incorporates firm heterogeneity. The main analysis is extended in three chapters. Sources of the competitiveness gap between the two industries are explored in Chapter 4. Chapter 5 demonstrates the dynamics of non-exporters in Kenya, while the dynamics in the export market, namely export participation, are analysed in Chapter 6. We found that the most influential source of the competitiveness gap is labour cost rather than productivity; the wages in Kenya are far higher than those in Bangladesh. Due to the large cost gap, the Kenyan garment industry experienced a drastic contraction in the liberalized local and export markets. Consequently, Kenyan local firms specialised in the local uniform growth and discouraging participation to the export market. High labour costs relative to income per capita can be an important cause of the stagnation of the manufacturing sector in some other African countries where the labour cost is as high as it is in Kenya.

An application of porter's theory of the competitive advantage of nations in determination of the competitiveness of the Kenyan Tea Export Industry

Author: Keter, Winnie Chepkurui

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Strategic planning/Competitive advantage/Globalization/Tea trade/Exports ;

Abstract:

The Tea export industry plays a very crucial role in the Kenyan economy as tea is one ofthe main foreign exchange earners. In fact Tea has overtaken tourism to become the country's number one foreign exchange earner. Although the tea industry has been completely liberalized, government control exists under the Tea Board of Kenya whose directors are directly elected by key stakeholders in the industry. As the global environment changes, it is important that the tea exporting firms assess the changes with a view to enhancing their competitiveness. Porter in his theory of competitive advantage points out that there are four primary determinants of competitiveness of firms; factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. The objectives of study were to determine the competitiveness of the Kenya Tea export industry using Porter's theory of the competitive advantage of nations and to establish any other factors other than those suggested in the theory that could influence the competitiveness of Kenya's tea export industry. Literature review was gathered from various authoritative sources with more emphasis on more current and relevant literature from renowned authors in strategic management. The research design used was a descriptive survey approach which targeted 67 registered tea exporting companies in Kenya located within the city of Mombasa. The data collection tool used was a questionnaire with closed and open-ended questions guided by the contents of the literature review and aimed at achieving the set objectives. The targeted respondents were the Managing directors of the firms. The results obtained from the questionnaire were first summarized in a data preparation process and results were analyzed using the descriptive analysis and use of graphical techniques. Tables were used to show percentages and trends in the data. In order to measure the spread of the data over the sample population, mean scores and standard deviations were calculated using the SPSS package. The study revealed that the tea exporting firms in Kenya apply the Porter's theory of competitive advantage but also considered other factors in enhancing their competitiveness in the industry.

Response strategies adopted by handicraft traders in Kenya to challenges of exporting

Author: Ndungu, Sarah Muthoni

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Handicrafts ; Small business ; Exports ; Strategic management ;

Abstract:

Numerous studies carried out on strategy have concentrated on response strategies of different organizations with none on the handicraft sector. Handicraft business has increasingly become an important employer for majority of rural population and the youth. Majority of these players lack appropriate knowledge on export business thus facing major challenges. Unlike horticulture export, handicrafts are a small scale undertaking and lacks structured export bodies which can assist in export. Review of past studies reveals that nothing much has been covered on the handicraft sector compared to other export commodities from the Kenyan economy. This study employed a descriptive research design. The target population consisted of 177 traders who are actively involved in export of handicrafts. The sample size of the study was 85 export traders. Simple random sampling method was used to obtain the sample size. Data collection was done using a questionnaire while data analysis was done using descriptive statistics. From the findings, the study concluded that the majority of the handicraft businesses were based on individual ownership with limited financial capital base to expand and take advantage of the existing opportunities in the global market. In addition the main destinations of Kenyan handicrafts are Europeans countries and USA respectively. There is wide range of handicraft products from the Kenyan exporters which enhances their competitiveness in the global market. The majority of handicraft traders export their products indirectly through agents and majority of them never promote their products abroad. This has been attributed to lack of adequate marketing skills and financial resources to fund marketing efforts. The most significant challenges facing export of handicrafts by Kenyan traders were high packaging and shipping costs, high and ever changing tariffs, certification and quality standards set by importer countries, counterfeits and lack of patent laws and lack of innovation and creativity amongst artisans to meet market specifications and demanding contracts respectively. The action plans to overcome export related challenges of handicrafts in Kenya included 'participation in training programs and workshops to enhance skills, use of credit facilities and loans to support business and differentiating of products to offer unique and high quality products respectively. The study recommends that the government and other key players in the handicraft sector should coordinate to address the challenges facing Kenyan handicraft traders in exporting their products. The study also recommends that government and other stakeholders should explore ways of enhancing accessibility of credit facilities to the handicraft traders to enable them expand their enterprises and reduce the middlemen in order to maximize on their profitability. The study further recommends that government and other stakeholders should organize regular marketing forums and scale up the existing ones for the Kenyan handicraft traders in the various export destinations to promote the handicraft sector. The study also recommends that Kenyan handicraft traders should adopt the modem technologies of production and marketing of their products to gain a competitive edge in the export business.

Export led growth hypothesis : evidence from Kenyan data

Author: Muhoro, Grace Wangui

Awarding University: University of Nairobi, Kenya

Level : MA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Economic growth ; Exports ;

Abstract:

The Export-Led Growth Hypothesis (ELGH) postulates that export growth is one of the key determinants of economic growth. This paper aims to investigate the Export-Led Growth Hypothesis in Kenya using annual time series data from 1976 to 2011 and dynamic time series techniques of Vector Error Correction Model, Auto Regressive Distributpd Lag and 2- Stage Least Squares. The 2-Stage Least Squares is used to correct for the endogeneity problem of the variables involved. A seven-variable Vector Auto Regression (V AR) model (GDP, Exports, Imports, Household Consumption, Government Consumption, Gross Fixed Capital Formation and Foreign Direct Investment) is developed from a national income identity that links output to its contributing factors. The results indicate that there is unidirectional causality running from exports to economic growth. This implies that exportled growth hypothesis can be supported in the Kenyan economy in the short run. Besides, our results suggest that the growth rate of household consumption and Gross Fixed Capital Formation have positive and statistically significant impacts on economic growth. Hence, in the case of Kenya, export enhancing policies that will improve the quantity, quality and value of exports in the overall GDP contribution of exports are recommended in promoting and sustaining economic growth.

Competitiveness of Kenya's manufactured exports to the East African Community

Author: Ayieko, O Bernard

Awarding University: University of Nairobi, Kenya

Level : MA

Year: 2011

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Exports ; Manufactured products ; East African Community ; Common markets ;

Abstract:

Despite policy efforts to diversify exports, Kenya's export base is still largely dominated by primary products from the agricultural sector. Trade and commodity concentration has led to export earnings fluctuations which eventually leads to the problem of balance of payments, budgets deficits and does not permit future systematic economic planning. With dwindling fortunes in the agricultural sector due to vagaries of weather among others, it is imperative for policy makers to deal with the issue of diversification of the country's exports. This will help cushion the country against shocks arising from the instability in the foreign exchange markets especially for the primary products. This strategy will contribute to the development of new export markets for manufactured goods destined for the EAC. By using panel data this paper investigated factors influencing competitiveness of Kenya's manufactured exports to the EAC. The primary concern of policy makers and macroeconomic analysts is what factors promote or inhibit the flow of Kenya's manufactured exports to the EAC. The findings indicate that trade policy, captured by openness and nominal exchange has a large effect on export competitiveness, their coefficients are large. However, fixed capital formation which is a proxy for trade facilitation has a small effect on export competitiveness. Infrastructural development is not playing the rightful role in releasing export potential of the trading bloc; hence is a bottle neck on the export supply side. The national government should have a policy of infrastructural investment like construction of corridors and upgrading of railway system to increase accessibility and ease the movement of manufactured exports. Unit labour cost has a negative effect on export competiveness. EAC member countries are labour abundant and therefore productivity of labour is more important than numbers. The member countries should invest in research and development, health care, education and capital equipment to increase labour productivity that lower unit labour cost thereby increasing competitiveness of manufactured goods.Therefore, manufactured exports are important for Kenya's export matrix. It is therefore critical for the GOK and policy makers to work towards accelerating policies that will improye the volume of exports of manufactured goods to the EAC while drawing lessons from Asian tigers.

Partnerships for learning and innovation in agri-export industries : a case study of ?farmer-exporter? partnerships in Kenya?s flower industry

Author: Bolo, M. O

Awarding University: Open University, England

Level : PhD

Year: 2011

Holding Libraries: Institute of Commonwealth Studies Library ;

Subject Terms: Farmers ; Marketing ; Exports ; Flowers ; Partnerships ;

Abstract:

This study examines the role of partnerships, institutions and governance arrangements in building cut flower farmers? innovation capabilities. It interrogates whether partnerships between farmers (both small scale and large scale) with exporters contribute to building the farmers? capabilities; how the institutional (contractual versus non-contractual) and governance patterns (captive versus relational) influence the ability of such partnerships to enhance farmers? capabilities; and the role of other actors (research institutes, universities, regulatory agencies, input suppliers and NGOs) in supporting these partnership and contributing to building farmer capabilities. This focus was motivated by the declining performance of small scale farmers in Kenya and the fact that small scale farmers appear to be excluded from high value cut flower export business. Whereas this exclusion is often explained in terms of limited access to capital, infrastructure and stringent market standards and regulations, this thesis takes the view that (besides these factors) exclusion of small scale farmers results from choices that different actors make about enhancing farmers? capabilities to innovate, as well as the policy and institutional environment that underpins and reinforces such choices. The study follows largely a case study approach and employs different methods including structured surveys, in-depth interviews and ethnography. Our findings show that even though farmers? production capabilities have benefited from their partnerships with exporters, value addition capabilities have only improved modestly and remain a key challenge to small scale farmers. Similarly, marketing is dependent on knowledge and information passed on by the exporters. Secondly, the findings further show that interactions between farmers and R&D actors are undermined largely by the structural, cultural and operational procedures of the R&D institutes and universities.

Apparel exportism in Kenya : international regimes, chain governance and upgrading

Author: Kindiki, M M

Awarding University: London, University College

Level : PhD

Year: 2011

Holding Libraries: Institute of Commonwealth Studies Library ;

Subject Terms: Clothing industry/Exports/Folklore/ ;

Abstract:

An important question in development is how far can the contemporary global context create industrial development opportunities for the South, particularly for low income countries? In an important sense, this can only be answered in non-abstract terms, since the institutional conditions facing particular industries at particular times are highly specific. In this research, a configuration of four regimes- the structural regime on production and trade in apparel, the labour regime, the neo-statist European Union regime on production and trade in apparel and the neo-statist United States regime on production and trade in apparel- creates a window of opportunity for a Kenyan export oriented apparel industry. However, we must ask whether this industry is autonomous from these regimes to the extent that its gains can be sustainably embedded within Kenya, notably in terms of product and labour upgrading, or is it, rather, subservient to them? My theoretical discussion shows that the Global Value Chain (GVC) approach presents lead firms as the primary governors in GVCs, while International Relations theory presents regimes as the primary governors in issue areas. The discussion gives a Dependency interpretation of regimes, subsuming the GVC approach in that interpretation, and arguing that, as far as issue areas are concerned, 'external' control-emergent regime governance of the GVC overrides 'internal' control lead firm governance. My empirical discussion shows that the upgrading of the Kenyan apparel industry has been insignificant, and that the governance of regimes on production and trade in apparel, while not a necessary condition, was a sufficient condition to undermine it. Nonetheless, the Kenyan Government and social movements can exploit systemic weaknesses, the former by negotiating for a single transformation of fabric and promoting export of folklore/ hand loomed/handmade products, the latter by demanding for the full implementation of minimum labour conditions.

An analysis of the effects of ACP-EU trade relation on Kenya's Exports between 1960 and 2010

Author: Okumu, Boscow Odhiambo

Awarding University: University of Nairobi, Kenya

Level : MA

Year: 2011

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Exports ; European Union ; African, Caribbean and Pacific states ; Trade relations ;

Abstract:

Despite the long relationship between the EU and the African, Caribbean and Pacific (ACP) countries aimed at encouraging their exports while stimulating growth and investment, the ACP states still face difficulties in integrating into the world economy. This paper examines the effect of this trade relation on Kenya's exports since 1960 through determining the effect of reciprocity on Kenya's real export values. The objective was to determine the effect of the trade relation on exports and to identify the determinants of Kenya's exports to the EU. The study used two stage least square regression and ordinary least square regression method to determine the effect using exports values as the dependent variable and other independent variables were foreign aid, real gross fixed capital formation, terms of trade, consumption which was used as a proxy for real gross domestic product and a dummy variable capturing the effect of reciprocity as a proxy for assessing the effect of the trade relation. The results showed that during periods when there was reciprocity, Kenyan export values were more stagnant and low, unlike periods when ACP states were given preferential treatment i.e. when there was no reciprocity. It is therefore evident that the proposed EPAs may worsen the current situation of Kenya's exports. Similarly consumption, foreign aid, terms of trade and the dummy variable for reciprocity were found to be very significant in determining Kenya's exports to the EU.

Essays on HIV/AIDS, Exports and Poverty in Kenyan manufacturing

Author: Mwange, Nancy Nelima Nafula

Awarding University: University of Nairobi, Kenya

Level : PhD

Year: 2011

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Manufacturers ; Employees ; Mental health care ; Productivity ; Exports ;

Abstract:

Empirical investigations exploring the nexus between poverty, exports, health and labour productivity in manufacturing sectors of developing countries are rare. Existing analysis has mainly centered on performance of firms with very limited analysis on the connection between health, exporting and the well-being of workers. It is in this context that the current thesis was undertaken to examine the linkages between employees' HIV/AIDS concerns (proxy for mental health), export competitiveness and the poverty status of the labour force in Kenyan manufacturing industry. The study empirically examines productivity and welfare effects of mental health capital, a complement to human capital. The thesis consists of three linked essays. The first essay evaluates the effects of mental health on firm revenues and wages of workers. The second essay establishes the link between mental health and total factor productivity and the consequent effects of productivity on exports. Mental health is assumed to affect total factor productivity through training of workers. The third essay analyses the impact of exports on the poverty status of the workers. The importance of improved mental health in exporting lies in the role mental health plays in the trainability and productivity of manufacturing workers. We assume that if output is produced efficiently, a firm is more likely to engage in exporting since production efficiency makes it competitive in international trade. Exporting firms in tum, are more likely to pay their workers higher wages and hence lift them out of poverty. Using the cross-sectional data for 2002/3 from Kenyan manufacturing firms, the thesis demonstrates that firm expenditures on medical care improve the mental health of workers, which in tum results in increased productivity of the labour employed by manufacturing firms. Heckman selection models and the control function estimation techniques are used to address heterogeneity and sample selectivity problems encountered in the models of impact analyses in situations such as the ones studied in the thesis. Importantly, the thesis demonstrates that total factor productivity matters for export propensity and export intensity, and that exporting is a viable strategy for poverty reduction.

Role of EPZ on Kenya's manufactured Exports

Author: Marang'a, Moses Wambugu

Awarding University: University of Nairobi, Kenya

Level : MA

Year: 2011

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Export Processing Zones, Kenya ; Exports ;

Abstract:

Since early 1990's, Kenya has implemented a number of trade and fiscal policy reforms that were partly intended to encourage increased export activity by manufacturing firms. This strategy to promote exports was in accordance with the principle that increased exports would enhance overall economic performance. The trade and fiscal policy reforms have been an integral part of Kenya's economic development strategic plan, a key policy instrument to spearhead rapid economic growth. In this paper, the question of the role of EPZ on manufactured exports in Kenya has been investigated. The study has used OLS technique to determine the level of increase of manufactured exports in Kenya as a result of EPZ investments and EPZ output growth. In line with this study's objective, the key findings are that there is a positive and significant relationship between EPZ output and manufactured exports. Further, there is a positive but insignificant relationship between EPZ investment and manufactured exports. Consequently, any policy measure that can help boost the output level of firms operating under EPZ is expected to go a long way in increasing the level of Kenya's manufactured exports.