Productivity as a measure of the degree of export-orientation of micro enterprises
Date
2006-10-20
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Abstract
Micro enterprises play a vital role in the economy but its contributions are generally understated and hardly realized. This study aims to measure export orientation and labor productivity and the relationship between the two stated variables in micro enterprises in the manufacturing sector. Labor productivity is isolated in order to determine its effect on micro enterprises, capacity to export. Several factors supported by related literature are given representation to serve as control variables. The cross section analysis of the data shows that labor productivity is not a major determinant of export orientation. Its coefficient is significant but negative. Although contrary to the hypothesis, this may be interpreted that the current level of productivity is insufficient to allow export of products made by the manufacturing industries. The micro enterprises in the manufacturing industry are productive but not yet to the extent that enables them to competitively participate in foreign markets.
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Keywords
Micro enterprises, Enterprises, International trade, Trade, Enterprises productivity, Productivity