Exporting Africa: Technology, Trade, and Industrialization in Sub-Saharan Africa

By Samuel M. Wangwe | Go to book overview

3

Some conceptual issues and methodology of the study

SOME CONCEPTUAL ISSUES

Chapter 1 indicated that the main aim of this book is to explore and present some insights into the process of creating and maintaining the capabilities which are needed for attaining and maintaining competitiveness in export markets. For the purposes of this study the concepts of ‘capability’ and ‘competitiveness in export markets’ will need to be clarified.

Competitiveness in export markets implies high levels of productivity. In order to understand the concept of international competitiveness it is useful to revisit the concepts of productivity and efficiency, concepts which are often taken for granted.

The productivity of a production unit is the ratio of its output to its input. Productivity differences are accounted for by differences in production technology, differences in the efficiency of the production process and differences in the environment in which production occurs. Three problems of measurement arise here: the identification of inputs and outputs to be included in the analysis, what weights (prices) should be used in the aggregation process and (if one is comparing actual productivity with what is theoretically achievable) the determination of the potential of the production unit (Lovell, 1993). 1

The efficiency of a production unit is the ratio between the observed and the potential maximum output obtainable from a given input, or the ratio of minimum potential input to the observed input required to produce a given output. Koopmans (1951) 2 introduced a formal definition of technical efficiency, i.e. a producer is technically efficient if an increase in any output requires a reduction of at least one other output or an increase in at least one input, and if a reduction in any input requires an increase in at least one other

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Exporting Africa: Technology, Trade, and Industrialization in Sub-Saharan Africa
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Tables vii
  • Acknowledgements xii
  • Part I - Exporting Africa: an Analysis 1
  • 1 - Introduction 3
  • 2 - Trade Theory 16
  • 3 - Some Conceptual Issues and Methodology of the Study 35
  • 4 - The Changing World Economy 52
  • 5 - Main Findings of the Study 82
  • 6 - Conclusions and Policy Implications 117
  • Notes to Part I 122
  • Bibliography 131
  • Part II - Country Studies 141
  • 7 - Zimbabwe 143
  • 8 - Tanzania 199
  • Notes 243
  • 9 - Nigeria 246
  • Notes 295
  • 10 - Kenya 296
  • 11 - The Ivory Coast 344
  • 12 - Mauritius 383
  • Appendix 407
  • Index 413
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