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Export agglomeration economies in Sub-Saharan Africa manufacturing and service sectors

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  • Abegaz, Melaku
  • Nene, Gibson

Abstract

This study examines the effects of export spillovers in the manufacturing and service sectors of 19 sub-Saharan Africa (SSA) countries. We investigate whether the exporting probability of a domestic firm is influenced by the pool of nearby domestic and foreign-owned exporting firms. We adopt a multi-level estimation approach to control for heterogeneities due to country- and city-level effects. Results indicate that the exporting probability of a domestic manufacturing firm is positively associated with the pool of domestic exporting firms in the same industry and foreign-owned exporting firms in other industries. However, negative export spillovers are observed from foreign-owned exporters in the same industry and domestic exporters in other industries. In the service sector, we find positive spillovers from domestic exporters in the same industry. Policymakers in sub-Saharan Africa should encourage exporting domestic firms to agglomerate geographically by creating industrial zones and providing services to promote information exchange between exporting and non-exporting firms.

Suggested Citation

  • Abegaz, Melaku & Nene, Gibson, 2022. "Export agglomeration economies in Sub-Saharan Africa manufacturing and service sectors," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 40-51.
    • Handle: RePEc:eee:quaeco:v:84:y:2022:i:c:p:40-51
    DOI: 10.1016/j.qref.2022.01.005
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    2. Kang Pan & Rong Liu & Xiaowei Chen & Ying Huang, 2023. "How Does Industrial Agglomeration Affect Exports? Evidence from Chinese Province-Industry Panel Data," Sustainability, MDPI, vol. 15(13), pages 1-18, June.

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    More about this item

    Keywords

    Sub-Saharan Africa; Export spillovers; Agglomeration; Manufacturing firms; Service sector;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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