Domestic Constraints, Firm Characteristics, and Geographical Diversfication of Firm-Level Manufacturing Exports in Africa

Abstract

Using firm-level data on manufacturing sectors in Africa, this paper addresses how domestic supply constraints and other firm characteristics explain the geographical orientation of firms' exports and the overall market diversification of African manufacturing exports. The degree of market diversification, measured by the number of export destinations, is highly correlated with export intensity at the firm level, and both embody strong scale effects. Also, technological factors such as new vintage capital and Internet access, which improve production efficiency and lower export costs, have strong effects.