Determinants of export performance for processed Coffee in Tanzania: the 1987-1996 experiences

The objective of this dissertation is to develop and estimate the determinants of export performance for processed coffee in Tanzania, with other sub-objectives of singling out firm level factors which deserve more focus and emphasis for successful production and export performance. In this regard, the study introduces new proxy policy variables such as neo-factor proportion defined as value-added per employee, research and development intensity defined as a proportion of research and development expenditure to the firm's total sales. Other variables include the skill intensity as a proportion of wages to total employment of the firm, strategic alliances with foreign firms and the managerial intensity. The study focuses on such proxy variables to glean for some policy implications for firm level export performance, a dependent variable defined as a proportion of export to total company sales. The results of empirical (1987-1996) analysis of this study indicate that all explanatory variables of the regression equations are jointly significant, with higher coefficients of determination. This study establishes the importance of skill factors in determining the export performance of manufacturing firms in Tanzania. Some of the policy implications of this study are that the policies of our export processing should be so designed as to enhance or improve skill endowment in the industries concerned. Of particular importance, is the suggestion that strategies for human resources development need to be supplemented with indigenous research and development efforts.