The name is absent

orientation and the dependence on imported inputs of individual firms.⁵ We note that export-
oriented firms did better than non-exporting firms in the sense that the ratio of their input prices to
their output prices increased relatively less (16.5% compared to 26.7%) in Gabon and
decreased in Chad (-42%). This was to be expected, given that exporters should have enjoyed a
fairly substantial increase in the CFAF price of their output. However, prudence is required when
interpreting the data, due to the small number of exporting firms involved in our sample (only one
in Chad).

Furthermore, firms that relied heavily on imported intermediates did quite poorly. In
Gabon, imported input intensive firms saw the relative price of their inputs increase by 32.2%
between 1993 and 1996, compared with only 10.7% for firms relying on domestic inputs. In
Chad, the trend was even more pronounced, as imported input intensive firms saw their relative
input price rise by 40.1%, while domestic input intensive firms saw a decrease of
19.5%.Summing up, average changes in relative prices are in the expected direction, as they
provide favourable incentives towards tradable activities and namely the export sector.

4.    FIRM-LEVEL RESPONSES: OUTPUT AND PRODUCTIVITY GROWTH

Thus far we have established that the devaluation and reforms did indeed change relative
prices at the firm level as intended. In this section, we look at the impact of the reforms on real
output and productivity. Among the key objectives of the devaluation and reforms was to shift the
pattern of production toward tradable goods and boost productivity. Were these goals achieved?

⁵ A firm is classified as an exporter if it exports any percentage of the value of its output in 1993. A firm is
defined as dependant upon foreign inputs when it imports (directly or indirectly) more than 50% of the
value of its inputs in 1993.

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