Abstract
Many governments globally have recognised exporting as an engine for economic growth, thereby promoting exports through various export promotion programmes. The programmes are aimed at overcoming the challenges firms experience in the export market. While there are studies on export promotion, the impact of export promotion programmes at firm level has not been thoroughly analysed. This study aims at analysing the impact of the National Export Strategy (NES) at firm level by focusing on the plastics and packaging industry in Malawi for the period 2002 to 2018. The study uses a cross sectional research design with a mixed method research approach. The study also investigates the challenges that impact exports in the industry. All firms in the industry and all government officials involved in the NES were included in the research sample and a total of 12 questionnaires (six from government officials and six from firms) were collected and analysed. The findings of the study reveal that the NES did not improve the performance of the firms in the plastics and packaging industry as intended. Firms’ performance in certain areas were satisfactory but it is uncertain to what extend the NES attributed to the firms’ export performance. The findings further suggest that firms’ poor export performance and the inability of the NES to positively impact the industry’s export performance rests on a number of challenges including the shortage of skilled labour, high taxation, delays in customs, unreliable transport and logistics, high competition from smuggled plastics products, lack of access to finance, use of recycled products, unreliable electricity, natural disasters, and a government ban on the production of thin plastics. The results also emphasised that a government sponsored export promotion program alone is not adequate for firms to achieve their export objectives or to enhance the firms’ export performance if the program do not offer incentives and support infrastructure. The study provides policymakers in Malawi with knowledge to make informed policy decisions in improving the NES.
M.Phil. (Industrial Policy)