Details

Related name

• Cirera, Xavier [Browse]
• Cusolito, Ana [Browse]

Series

• Investment Climate Assessment [More in this series]
• World Bank e-Library. [More in this series]

Summary note

This technical note implements a firm-level productivity diagnostic using the census of manufacturing firms and a large services survey in Kenya. By using a number of stylized productivity indicators, we aim to identify the ability of Kenyan firms to grow. The information presented in this diagnostic will help to conduct evidence-based policy-making. Specifically, implementing firm-level productivity diagnostics provide the necessary information for (i) improving the targeting of economic policies, (ii) enhancing their effectiveness, (iii) making more accurate predictions of the effects of industry shocks and policy reforms on the economy, and (iv) understanding the behavior of macroeconomic variables by tracking the evolution of variables at the firm-level. This note shows that there is a lot of heterogeneity in firms' attributes and performance, and this can potentially be attributed to the presence of economic distortions that affect the efficient allocation of resources across firms, with the manufacturing sector showing a lackluster performance compared to the services sector. Overall, the findings highlight the importance of locating productivity at the center of the competitiveness agenda as a key instrument for employment creation and poverty reduction.

Doi

• 10.1596/24972

Statement on language in description

Princeton University Library aims to describe library materials in a manner that is respectful to the individuals and communities who create, use, and are represented in the collections we manage. Read more...