Revealed Comparative Advantage and Export Propensity in Kenya

IPAR Discussion Paper No. 015/99

30 Pages Posted: 15 Jan 2005

See all articles by Eliud Moyi

Eliud Moyi

Institute of Policy Analysis and Research (IPAR)

Peter Kimuyu

University of Nairobi - Department of Economics

Date Written: March 1999

Abstract

Although some Kenyan garments are sold in American and European markets, the main destination for the country's exports are regional, and exports of manufactures marginal. Revealed Comparative advanatage analysis confirms domination by resource-based products in the export composition, and there is no evidence of a shift from such domination. Kenya has also been gradually losing its competitveness in the export markets and Kenyan exporters remain diversified to hedge against export-related risks. Large, formal food processing and metal-working enterprises are not only more inclined to export but also export a relatively greater proportion of their total production than other enterprises. Export expansion would benefit from reduction in policy induced export risks. Export promotion incentives would have greater impact if they targeted food processing and metal working enterprises. Additional export-related benefits would accrue from incentives for enterprise growth and mainstreaming, a general improvement in the level of education and labor productivity.

Keywords: Exports, revealed comparative advantage, competitiveness

JEL Classification: F14

Suggested Citation

Moyi, Eliud and Kimuyu, Peter, Revealed Comparative Advantage and Export Propensity in Kenya (March 1999). IPAR Discussion Paper No. 015/99, Available at SSRN: https://ssrn.com/abstract=648903 or http://dx.doi.org/10.2139/ssrn.648903

Eliud Moyi (Contact Author)

Institute of Policy Analysis and Research (IPAR) ( email )

P.O. Box 45843-00100
Nairobi
Kenya

Peter Kimuyu

University of Nairobi - Department of Economics

Nairobi
Kenya

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