UNU-MERIT Working Papers Series
Knowledge-based productivity in ‘low-tech’ industries: evidence from firms in developing countries
Micheline Goedhuys, Norbert Janz & Pierre Mohnen #2008-007Using firm level data from five countries - Brazil, Ecuador, South
Africa, Tanzania and Bangladesh - this paper examines the
knowledge-based determinants of productivity of firms active in food
processing, textiles, and garments and leather products. In particular,
it seeks to investigate the importance of various sources of knowledge
in explaining productivity in the different industries. The knowledge
sources driving productivity performance are very different across
sectors. In food processing, firm productivity is most strongly affected
by quality of management and foreign ownership linkages. In textiles,
firms raise productivity levels by importing new machinery and through
research and development. In garments and leather products, R&D and
design activities, high quality management and licensing technology from
foreign firms are significant productivity determinants. Firms'
productivity levels are further depressed by regulatory and financial
constraints.
Keywords: productivity, knowledge, R&D, developing countries, food
processing, textiles, garments, leather
JEL classification: D24, L66, L67, O14, O31
UNU-MERIT Working Papers
ISSN 1871-9872
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