Export margins and survival: A firm‐level analysis using Kenyan data

Abstract

AbstractThis study uses annual customs transaction data (HS six‐digit) for the period 2006–2018 to analyse the impact of average tariffs on the export sales, margins and survival of firms in Kenya. Results from the fixed‐effects regression model reveal that a 1% increase in tariffs reduces exports by 0.181% and the intensive margin by 0.183% but does not affect the extensive margin. Meanwhile, the cloglog fixed‐effects duration model reveals that a 1% increase in tariffs reduces export survival by 2.7%. This suggests that cutting tariffs, possibly through trade agreements, can help firms and countries improve their export performance.