The Growth Dynamics of New Export Entrants in Kenya: a Survival Analysis

Working paper 712
Author(s): 
Peter W. Chacha and Lawrence Edwards
Publication date: 
September, 2017
Classification-JEL: 

This paper uses firm-level transaction dataset from Kenya to examine the entry and growth dynamics of new exporters in international markets and the factors associated with survival in foreign markets. The findings show that for the new exporters, once their trade relationship manages to survive the initial year of entry, it grows and expands overtime contributing substantially to the nation’s exports. However, survival beyond the first year is only for a few. Firm export behaviour such as a large initial trade value of a transaction, exporting differentiated products, exporting a larger number of products and serving a large number of destination countries plays a significant role in the survival of exporters in international markets.

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