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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Industrialization and the Low-Level Production Trap: Handtools and Cutlery in Kenya
Author:Kerre, Hassan O.
Periodical:Eastern Africa Economic Review
Geographic term:Kenya
Subjects:industrial development
Development and Technology
Economics and Trade
Abstract:This study of the Kenyan handtools and cutlery industry illustrates how Third World countries are enmeshed in a low-level production trap - low production, high per-unit costs, high prices, and low sales - though plagued by excess capacity. Statistics and simple graphs of the economics of producing machetes, shovels and hoes in Kenya portray the dilemma. Despite possibilities to achieve economies of scale by selling at the long-term average cost and, thereby, capturing the local market, local firms lack sufficient risk capital to endure the consequent short-term losses. Government policy could turn this dilemma into a boon by identifying and protecting such potentially efficient industries. Bibliogr., notes.