Effect of power outages on export performance of manufacturing firms in Kenya
Unreliable electricity supply often results in increased cost of production and lower output which reduces the competitiveness of firms in international trade. Despite the existence of evidence on the connection between power outages and export performance of firms in developed countries, such evide...
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| Dokumentumtípus: | Könyv része |
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University of Szeged, Faculty of Economics and Business Administration, Doctoral School in Economics
Szeged
2025
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| Sorozat: | Conference in cooperation with the European Association for Comparative Economic Studies
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| Kulcsszavak: | Áramszünetek hatása - feldolgozó ipar - Kenya, Nemzetközi Kereskedelem, Termeléskiesés - Kenya |
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| doi: | 10.14232/gtk.ppsgdte.2025.11 |
| Online Access: | http://acta.bibl.u-szeged.hu/89226 |
| Tartalmi kivonat: | Unreliable electricity supply often results in increased cost of production and lower output which reduces the competitiveness of firms in international trade. Despite the existence of evidence on the connection between power outages and export performance of firms in developed countries, such evidence is non-existent in developing countries like Kenya where power interruptions are a common phenomenon. Therefore, the study investigated the effect of power outages on export performance of manufacturing firms in Kenya using 2018 World Bank Enterprise Survey data. By employing Heckman two step procedure, the study findings indicated that frequency of the power outages have a negative statistically significant effect on export propensity, although this effect was reversed with the introduction of an interaction term between frequency of power outages and capacity utilization. Besides, energy cost lowered both the export propensity and export intensity of firms. Further, labor productivity increased the chances of firms exporting and their export intensity. Therefore, the study concluded that power outages affect the export propensity rather than export intensity of Kenyan manufacturing firms. The government should address the frequency of power outages in the country as it is a hindrance to exporting decisions of the manufacturing firms. It should also address the rising energy costs as they lower both the export propensity and export intensity of the manufacturing firms. |
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| Terjedelem/Fizikai jellemzők: | 195-208 |
| ISBN: | 978-963-688-088-0 |