Skills, Investment and Exports from Manufacturing Firms in Africa

It has been argued that Africa will not be able to export manufactures as it lacks the necessary skills. This study uses panel data from Ghana to ask how skills have impacted on manufacturing investment and exports in the 1990s. Two dimensions of skills are defined and measure. The first is that observable in the education and experience of the workforce. The second is the underlying efficiency with which the firm operates. The latter is shown to be a significant determinant of both investment and exports. These exports are relatively capital intensive; unskilled labour-intensive exports remain negligible. Possible reasons for these outcomes are discussed.