Open Access Original Research Article

Kenyan Exports: Tax Incentives, Firm Traits, Firm-Level, and Macroeconomic Determinants

Cyrus Mutuku, Joseph Sirengo, Mohamed Omar

Journal of Economics, Management and Trade, Page 9-25
DOI: 10.9734/jemt/2021/v27i1130374

This study sought to understand the traits of the Kenyan exporter, what drives exports performance, and how the exporter responds to targeted policy measures. A two-stage approach to modelling was used. In the first stage, the firm’s decision to export was done in a panel logistic model. In stage two, the drivers of export volumes at the macro-level were estimated using a Vector Autoregressive (VAR) model. The panel econometric modelling method was applied to 118,380 firm-level data spanning 2014 to 2019. While firm-specific characteristics (age, size, access to credit, labour intensity, and labour quality) affect exports, government policy informs of tax incentives may not create a substantial difference in the decision and volume of exports at the firm level. Exporting firms are labour intensive. The results of a VAR model using time series data from 1960 to 2020 confirm the firm-level analysis. Kenya exports are more driven by local production capacity than world demand. Secondly, exports are more labour responsive than capital responsive at a macro level. Local productivity capacity is significantly labour-driven than capital-driven. Therefore, labour-targeted policies would be more impactful. Exports response to local production capacity is instantaneous while a period of 3.5 years lapses before exports respond significantly to world-changing demand.

Open Access Short Research Articles

Economic Storytelling, Tourism Improvement Districts and University Partnerships

Mark R. Testa, Lori J. Sipe

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/jemt/2021/v27i1130373

Business Improvement Districts (BID), sometimes called Tourism Marketing Districts (TMD) are innovative initiatives that levy assessments as a means of funding what might be traditionally paid for by local government. A recent increase in such organizations internationally may provide universities with an opportunity for a variety of positive benefits including revenue, research, educational improvement, and impactful student experiences. Universities and colleges have a history of partnering with industry, often referred to as University-Industry Partnerships (UIC), as a means for confronting ever-increasing economic challenges and shrinking budgets. Indeed, as funding for public universities continues to decrease, schools and departments within the university are forced to seek alternative revenue streams. The goal of the current study is to provide a conceptual model for understanding and engaging in economic storytelling as the research arm of such organizations. A case study of the partnership between San Diego State University and San Diego’s Tourism Marketing District is assessed against a model of best practices in partnering. Results highlight the value of the model and provide direction for other University-Industry Partnerships (UIC).