The Impact of Trade Liberalization on Firm Profitability in Ghana: Panel Evidence from Private Firms in the Manufacturing Sector

2021 ◽  
Author(s):  
Mabel Akosua Hoedoafia
Keyword(s):  
Trade Liberalization ◽  
Manufacturing Sector ◽  
Private Firms ◽  
Firm Profitability ◽  
The Impact

scholarly journals The Effect of Trade Liberalization on Firm Entry and Exit in Punjab, Pakistan

2014 ◽  
Vol 19 (1) ◽  
pp. 67-89
Author(s):  
Marjan Nasir
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Manufacturing Sector ◽  
Firm Entry ◽  
Entry And Exit ◽  
Export Industries ◽  
The Impact ◽  
Firm Entry And Exit ◽  
Exchange Rate Depreciation

This study focuses on the impact of trade liberalization on firm entry and exit in Punjab’s export manufacturing sector over the decade 2001–10. As far as the province’s export industries are concerned, real exchange rate depreciation attracts new firms but also leads weaker firms to exit. A reduction in local or international tariffs, however, has no significant impact on firm entry or exit.

scholarly journals Trade Liberalization and Productivity Growth: Firm-Level Analysis from Kenya

2020 ◽  
Vol 12 (4) ◽  
pp. 439-460
Author(s):  
Stephen Esaku ◽  
Waldo Krugell
Keyword(s):  
Trade Liberalization ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Policy Implications ◽  
Firm Level ◽  
High Productivity ◽  
Industrial Performance ◽  
Unit Reduction ◽  
Heterogeneous Effect ◽  
The Impact

We analyze the impact of trade liberalization on firm productivity growth in Kenya’s manufacturing sector, using a panel spanning 8 years; 1992-1999. Our analysis reveals that liberalizing trade generates high productivity improvements in the manufacturing sector. We find that a one-unit reduction in import duties as a percentage of total imports significantly increases firm-level productivity in the manufacturing sector by 5.7%. When we examine this effect on the firm’s share of exported output, we find that lowering of import duties significantly increases the share of output exported by 0.7%. Further, we sought to assess how the effect of import duties varied across the different industries in our sample. Examining the effect of import duties on industrial performance, we find a negative and statistically significant relationship in some of the industries. Our results show heterogeneous effect of reduction of import duties on industrial performance. Not all industries benefited from the lowering of import duties, especially the food and bakery, and garment industry, where productivity did not increase. These findings have important policy implications for improving the manufacturing sector. Consequently, formulating policies that effectively relax restrictive barriers to trade in the economy could speed up firm-level productivity in the manufacturing sector.

scholarly journals Trade Liberalization and Manufacturing Sector Performance in Nigeria

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
ENIEKEZIMENE, Ariayefa Francis and QUESTION ◽  
Keyword(s):  
Trade Liberalization ◽  
Structural Adjustment ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Multiple Regression Model ◽  
Import Penetration ◽  
Long Run ◽  
Sector Performance ◽  
Manufacturing Productivity ◽  
The Impact

This study examined the impact of trade liberalization on manufacturing sector performance in Nigeria from 1970 to 2018. A multiple regression model was developed to achieve the study’s objectives with real manufacturing growth rate (RMGR) as proxy for manufacturing sector performance. Import penetration, export penetration, dummy variable for structural adjustment programme alongside other control variables were used. Using the Autoregressive Distributed Lag (ARDL) bound testing for cointegration approach, it was found that all the variables for the model had long run relationship. Furthermore, the ARDL results revealed a mixed impact of trade liberalization on the performance of the manufacturing sector. Specifically, while trade liberalization exerted insignificant positive impact on RMGR in the short run, the impact was positive and statistically significant in the long run. Consequently, the study recommended policies that would encourage the importation of capital goods to enhance manufacturing productivity in Nigeria.

scholarly journals Conflicting Selves: Family Owners' Multiple Goals and Self-Control Agency Problems in Private Firms

2018 ◽  
Vol 42 (3) ◽  
pp. 362-389 ◽  
Author(s):  
Alfredo De Massis ◽  
Josip Kotlar ◽  
Pietro Mazzola ◽  
Tommaso Minola ◽  
Salvatore Sciascia
Keyword(s):  
Control Agency ◽  
Agency Problems ◽  
Self Control ◽  
Family Ownership ◽  
Private Firms ◽  
Financial Slack ◽  
Firm Profitability ◽  
Separate Source ◽  
The Impact ◽  
The Relationship

This study examines the self–control agency problems associated with family ownership in private firms. Theorizing that family owners’ inner conflicts between economic and non–economic goals lead to competing preferences in the allocation of financial resources, we predict that the relationship between financial slack and firm profitability is contingent on factors that increase the potential salience of either economic or noneconomic goals for family owners. Accordingly, our findings suggest that self–control is a separate source of agency costs in private firms and that family ownership is not as crucial as owners’ goals in predicting the impact of financial slack on firm profitability.

scholarly journals Trade Liberalization and Manufacturing Growth in Malaysia A Cointegration Analysis

2006 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Karunagaran Madhavan ◽  
Deviga Vengedasalam ◽  
Veera Pandiyan Vengedasalam
Keyword(s):  
Error Correction ◽  
Trade Liberalization ◽  
Manufacturing Sector ◽  
Cointegration Analysis ◽  
Correction Model ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run ◽  
Manufacturing Growth ◽  
The Impact

This study examines the impact of trade liberalization in the manufacturing sector in Malaysia. The theoretical framework for this study employs the Lucas model of 'human capital model of endogenous model'. This study also uses the cointergration test and error correction techniques to measure the impact of trade liberalization on Malaysian manufacturing sector during the period 1963-2003. The empirical results of cointergration test suggest that there exists a long run relationship between manufacturing output and its determinants of trade liberalization, labour, capital and education level. This study uses error correction model (ECM) to determine the short-run dynamics around the equilibrium relationship and suggest that labour and trade liberalization have emerged as significant determinants for the  manufacturing output in Malaysia.

scholarly journals THE EFFECT OF PROFITABILITY AND RISK MANAGEMENT ON WORKING CAPITAL MANAGEMENT

2011 ◽  
Vol 10 (1) ◽  
Author(s):  
Mudji Utami
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Manufacturing Sector ◽  
Financial Statements ◽  
Business Risk ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Firm Profitability ◽  
The Impact

This study aims to examine the impact of working capital management on profitability and risks of business companies. Furthermore, this study also examines what are the differences of working capital management industries in the manufacturing sector. Some researchers proved that influence of working capital management on profitability (Rahemanand Nasr 2007; Marc Deloof, 2003 and Hadori, 2005). In addition, Gitman (2009) also states that working capital management has an impact on firm profitability and risk. Business risk of each industry is different, thus working capital management will differ among industries. This study used data from 2001 until 2007 at the manufacturing sector firms which have coherent of annually financial statements during the study period and have been audited. In order to test the hypothesis, this study used regression analysis and analysis of variance. The research proves that working capital management affects profitability and risk of firm manufacturing sector during the period 2001-2007. Moreover, it also proves that there is a difference among working capital management industries in the manufacturing sector.

Foreign Entry and Profitability of Domestic Firms: Evidence from China

2013 ◽  
Vol 12 (2) ◽  
pp. 34-60 ◽  
Author(s):  
Dahai Fu ◽  
Yanrui Wu
Keyword(s):  
Ownership Structure ◽  
Manufacturing Sector ◽  
Domestic Firm ◽  
Business Enterprise ◽  
Export Intensity ◽  
Growth And Survival ◽  
Domestic Firms ◽  
Firm Profitability ◽  
Foreign Entry ◽  
The Impact

Profitability provides a yardstick for judging the operational efficiency, growth, and survival of a business enterprise. This study investigates the determinants of firm profitability in the Chinese manufacturing sector, with a focus on the impact of foreign entry on the profitability of domestic firms. Our findings show an inverted-U relationship between foreign entry and the profitability of domestic firms. Furthermore, we also find that the effect of foreign entry on domestic firm profitability varies according to the ownership structure of domestic firms and the export intensity of foreign newcomers.

Sign in / Sign up

Export Citation Format

Share Document