Do more diversified suppliers rebound faster than concentrated suppliers in times of shocks? Insights from Kenya

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Abstract

We examine how different firms and sectors rebound or prevail in crises. We draw on
insights from the performance (upgrading potential) of Kenyan horticulture, tea, and leather export firms during two recent, but very different, shocks to the Kenyan economy. The first is the 2008 global financial crisis, which was accompanied by domestic election violence. The second is the 2011 drought, further compounded by an export ban to the European Union for vegetables exceeding legal levels of pesticide concentration. Analysis of the impact of these heterogeneous shocks on Kenyan export firms sheds light on sector-by-sector patterns of recovery and provides valuable foresight for the ongoing COVID-19 pandemic.
Original languageEnglish
Place of PublicationHelsinki
PublisherUnited Nations University, World Institute for Development Economics Research
Pages11
Volume2020
DOIs
Publication statusPublished - 12 Aug 2020

Keywords

  • export firms
  • sectors
  • heterogeneous shocks
  • Kenya
  • global value chains

Research Beacons, Institutes and Platforms

  • Global Development Institute

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