A Comparative Analysis of Firm Based Training in East African Manufacturing Sector: Does Level of Education Matter?

Using World Bank's (2003) firm-level Investment Climate Survey (ICS) data for Kenya, Tanzania and Uganda, this paper examines extent in which education and skill levels are important determinants of Firm-based Training (FBT) in the East African manufacturing sector. The findings show weak evidence on complementary hypothesis between education and FBT but one which differs significantly across (perhaps depending on educational and training capacity of) different countries. Although other determinants of FBT apply differently to specific countries, size and technology characteristics are common determinants across the three countries. Furthermore, firms that care about HIV epidemic train more as a means to abate the negative effects of the epidemic on their human resources. Since FBT has potential to contribute to skill development, the findings imply that enterprise training should receive similar policy emphasis as education in the bid to enhance human resource development for growth and poverty reduction.

DOI: http://hdl.handle.net/20.500.11810/2905 Accepted: 2016-07-08T12:19:36Z