Using firm-level data from two selected African countries, we examine whether firm-level investment in capital is a possible channel through which less productive firms gain entry into export markets. Our findings reveal that non-exporters who invest in capital stock increase their probability...

This paper examines the effect of firm-level investment in capital on export entry and productivity growth among different firm size classes using matching and difference-in-differences techniques. We find that firm-level investment in capital reduces the burden of sunk costs of export market...