Revealed Comparative Advantage and Export Propensity in Kenya
IPAR Discussion Paper No. 015/99
30 Pages Posted: 15 Jan 2005
Date Written: March 1999
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: Suggested Citation