Determinants of Export Propensity and Intensity of Manufacturing Firms in Cameroon: An Empirical Assessment

Abstract

Many Developing Countries in the process of economic transition have engaged themselves with outward-looking export oriented policies, aimed at making their manufacturing sector very competitive. In this regard, this study aimed at examining the factors that can influence both the level of exports and the likelihood to export of manufacturing firms. The data for the study was obtained from the World Bank Investment Climate Survey (ICS). The findings from this survey showed that the turnaround time for cargo clearance at the port is faster for exporters than for importers (15.1 to 23.9 days), while transportation and energy supply were cited by more than half of the firms as key obstacles to production. The key empirical findings on the one hand showed that human capital; years of experience, turnover, and modernization have positive effect on both the likelihood to export and on the export intensity. On the other hand, insecurity and power outage have a detrimental effect on export performance. The results also pointed to the fact that many of the firms were labour intensive firms, taking advantage of the abundant cheap labour in the country. These results put together, provide insights into some policies needed to promote the performance of export manufacturing firms in Cameroon, among which include an improvement in human capital, turnover, electricity supply, security and use of technological modernized equipment.