Les Assemblées annuelles 2019 du Groupe de la Banque africaine de développement se tiendront du 11 au 14 juin 2019 à Malabo, en République de Guinée équatoriale. En savoir plus
Eugene B. Nyantakyi et Jonathan Munemo
This paper uses firm and industry level data from Ghana, Tanzania and Kenya to examine the effect of capital goods import on domestic firms' productivity, and the role firms' technology gap plays in aiding the transmission of knowledge embodied in capital goods to domestic firms. Our results show that increasing imports of capital goods and closing technology gap have significant positive effect on productivity. Further, domestic firms with technology standards further from the international frontier benefit more from capital goods import. From a policy standpoint, the results suggest that eliminating tariffs on capital goods will improve the performance of technically incompetent firms in the manufacturing sector in the SSA region.