Export margins and survival: A firm-level analysis using Kenyan data


TÜRKCAN K., Kraido S. M., Moyi E.

SOUTH AFRICAN JOURNAL OF ECONOMICS, vol.90, no.2, pp.149-174, 2022 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 90 Issue: 2
  • Publication Date: 2022
  • Doi Number: 10.1111/saje.12314
  • Journal Name: SOUTH AFRICAN JOURNAL OF ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, EconLit, Geobase, PAIS International, Public Affairs Index, Sociological abstracts
  • Page Numbers: pp.149-174
  • Keywords: export survival, extensive margins, intensive margins, Kenya, tariffs, PRODUCT DIFFERENTIATION, EXTENSIVE MARGINS, TRADE, DURATION, PERFORMANCE, SUCCESS
  • Akdeniz University Affiliated: Yes

Abstract

This study uses annual customs transaction data (HS six-digit) for the period 2006-2018 to analyse the impact of average tariffs on the export sales, margins and survival of firms in Kenya. Results from the fixed-effects regression model reveal that a 1% increase in tariffs reduces exports by 0.181% and the intensive margin by 0.183% but does not affect the extensive margin. Meanwhile, the cloglog fixed-effects duration model reveals that a 1% increase in tariffs reduces export survival by 2.7%. This suggests that cutting tariffs, possibly through trade agreements, can help firms and countries improve their export performance.