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

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...

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Main Authors:	Cusolito, Ana, Cirera, Xavier
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	firm productivity labor misallocation
Online Access:	http://documents.worldbank.org/curated/en/2016/07/26580297/firm-level-productivity-diagnostic-kenya’s-manufacturing-services-sector http://hdl.handle.net/10986/24972

id	okr-10986-24972
recordtype	oai_dc
spelling	okr-10986-249722021-05-25T08:50:41Z A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector Cusolito, Ana Cirera, Xavier firm productivity labor misallocation 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. 2016-08-29T20:28:57Z 2016-08-29T20:28:57Z 2016-01 Report http://documents.worldbank.org/curated/en/2016/07/26580297/firm-level-productivity-diagnostic-kenya’s-manufacturing-services-sector http://hdl.handle.net/10986/24972 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Investment Climate Assessment Economic & Sector Work Africa Kenya
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	firm productivity labor misallocation
spellingShingle	firm productivity labor misallocation Cusolito, Ana Cirera, Xavier A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
geographic_facet	Africa Kenya
description	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.
format	Report
author	Cusolito, Ana Cirera, Xavier
author_facet	Cusolito, Ana Cirera, Xavier
author_sort	Cusolito, Ana
title	A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
title_short	A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
title_full	A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
title_fullStr	A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
title_full_unstemmed	A Firm-Level Productivity Diagnostic for Kenya’s Manufacturing and Services Sector
title_sort	firm-level productivity diagnostic for kenya’s manufacturing and services sector
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/07/26580297/firm-level-productivity-diagnostic-kenya’s-manufacturing-services-sector http://hdl.handle.net/10986/24972
_version_	1764457985641283584

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

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