Performance and Survival of Ugandan Manufacturing Firms in the Context of the East African Community

 Performance and Survival of Ugandan Manufacturing Firms in the Context of the East African Community
Using enterprise survey data of the World Bank from 2006, this paper investigates the factors influencing firm performance and survival after the promulgation of the East African Community (EAC). The major findings of the paper include: i) the EAC has adversely affected the survival of small and young firms; ii) large manufacturing firms are consolidating their position in the EAC market by exploring information technology and the larger market size to increase their output and value added per worker; iii) exporters, especially to the advanced markets, have a higher chance of survival compared to non-exporters. It was also evident that factors such as size, age, managerial experience and ownership of a firm significantly influence its performance. Government policies should aim at improving the macroeconomic environment in which manufacturing firms operate, so as to reap the benefits of the EAC and maximise the chances of firm survival. Specifically, government policy should aim to create more industrial parks, solve the problem of electricity power outages and encourage the penetration of information technology across the country.
Date: 2011-09-01
Author: Faisal Buyinza
File Name: Performance and Survival of Ugandan Manufacturing Firms in the East African Community - RS 83.pdf
File Size: 2.12 MB
File Type: application/pdf
Created Date: 09-01-2011
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