Skills, investment and exports from manufacturing firms in Africa

It has been argued that Africa will not be able to export manufactures as i t lacks the necessary skills. This study uses panel data from Ghana to ask how skills have impacted on manufacturing investment ann exports in the 199 0s. Two dimensions of skills are defined and measured. The first is that ob servable in the education and experience of the workforce. The second is th e underlying efficiency with which the firm operates. The latter is shown t o be a significant determinant of both investment and exports. These export s are relatively capital intensive; unskilled labour-intensive exports rema in negligible. Possible reasons for these outcomes are discussed.