Extensive and intensive margins: an analysis of Kenyan exports

Abstract

The study analyses Kenyan exports using fifty two commodities obtained from HS92 trade classification! exported to 223·export destination countries for the period 2004 " to 2013. The research aims at identifying the contribution of the intensive and extensive margins on export growth by "decomposing export growth along these . margins. The study finds that the intensive margin contributes on average 49.8% towards export growth and the extensive margin contributes 7.2% for the period studied. Additionally, the research aims to establish the factors determining Kenya's geographical diversification. To achieve this, a logistic regression is carried out. The study finds that market size, distance from exporter and previous experience in an export destination market are important in explaining the likelihood of supplying to a particular export destination market. The findings imply that to increase geographical diversification and counteract the effects of reduced export values from its major trading partners, Kenya should lobby for new markets.