IDEAS home Printed from https://ideas.repec.org/a/aoj/econom/v6y2019i1p13-24id971.html
   My bibliography  Save this article

Cluster Development in a Transforming Economy: The Case of Motorcycle Spare Parts Firms in Nnewi, Anambra State of Nigeria

Author

Listed:
  • Tobechi F. Agbanike
  • Augustine C. Osigwe
  • Denis N. Yuni
  • Thank-God C. Onoja
  • Sunday A. Okwor

Abstract

This paper examined the impact of cluster development in Nnewi, Anambra State of Nigeria. The estimated parsimonious model revealed that capital and labour were significant determinants of sales made by the firms while the cluster dummy variable was insignificant. This insignificance of the cluster dummy variable implied that, in terms of total sales, there was no significant difference between firms in the cluster and firms outside the cluster. For the profit model, we found that capital, labour and the cluster dummy were significant at 1% level. Capital, labour and cluster dummy have a positive relationship with firm profit. The positive coefficient of the cluster dummy variable indicated that the profit of firms in the cluster was significantly higher than that of the firms outside the cluster by about ₦31,050. It was therefore concluded that cluster residency made a significant difference in firm profit and recommended that government should encourage cluster development to accelerate the transformation of the economy.

Suggested Citation

  • Tobechi F. Agbanike & Augustine C. Osigwe & Denis N. Yuni & Thank-God C. Onoja & Sunday A. Okwor, 2019. "Cluster Development in a Transforming Economy: The Case of Motorcycle Spare Parts Firms in Nnewi, Anambra State of Nigeria," Economy, Asian Online Journal Publishing Group, vol. 6(1), pages 13-24.
    • Handle: RePEc:aoj:econom:v:6:y:2019:i:1:p:13-24:id:971
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/Economy/article/view/971/1147
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:econom:v:6:y:2019:i:1:p:13-24:id:971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/Economy/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.