A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector

Cusolito, Ana ; Cirera, Xavier

World Bank, Washington, DC

关键词: firm productivity;    labor misallocation;   

RP-ID  :  106985

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This technical note implements afirm-level productivity diagnostic using the census ofmanufacturing firms and a large services survey in Kenya. Byusing a number of stylized productivity indicators, we aimto identify the ability of Kenyan firms to grow. Theinformation presented in this diagnostic will help toconduct evidence-based policy-making. Specifically,implementing firm-level productivity diagnostics provide thenecessary information for (i) improving the targeting ofeconomic policies, (ii) enhancing their effectiveness, (iii)making more accurate predictions of the effects of industryshocks and policy reforms on the economy, and (iv)understanding the behavior of macroeconomic variables bytracking the evolution of variables at the firm-level. Thisnote shows that there is a lot of heterogeneity in firms’attributes and performance, and this can potentially beattributed to the presence of economic distortions thataffect the efficient allocation of resources across firms,with the manufacturing sector showing a lacklusterperformance compared to the services sector. Overall, thefindings highlight the importance of locating productivityat the center of the competitiveness agenda as a keyinstrument for employment creation and poverty reduction.