Value Added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia
AbstractSummary By contrasting the performance of clustered micro enterprises with that of dispersed ones in the handloom sector in Ethiopia, this study shows that clustering significantly increases profit. To correct for selection bias, we match clustered and dispersed micro enterprises that share similar observable characteristics except for being clustered both in urban and rural areas. Results show that clustering is more profitable in urban than rural areas. It is also found that regional-specific factors determining clustering of micro enterprises are different in urban and rural areas, highlighting the need to focus on local circumstances when formulating policies to promote clusters.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 39 (2011)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
cluster micro enterprises propensity score matching; handloom Africa Ethiopia;
Other versions of this item:
- Ali, Merima & Peerlings, Jack H.M., 2009. "Value added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia," 2009 Conference, August 16-22, 2009, Beijing, China 49922, International Association of Agricultural Economists.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard E. Baldwin & Toshihiro Okubo, 2006.
"Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting,"
Journal of Economic Geography,
Oxford University Press, vol. 6(3), pages 323-346, June.
- Richard Baldwin & Toshihiro Okubo, 2005. "Heterogeneous Firms, Agglomeration and Economic Geography: Spatial Selection and Sorting," NBER Working Papers 11650, National Bureau of Economic Research, Inc.
- Fujita, Masahisa & Thisse, Jacques-Francois, 1996.
"Economics of Agglomeration,"
Journal of the Japanese and International Economies,
Elsevier, vol. 10(4), pages 339-378, December.
- Fujita, Masahisa & Thisse, Jacques-François, 1996. "Economics of Agglomeration," CEPR Discussion Papers 1344, C.E.P.R. Discussion Papers.
- Fujita, M. & Thisse, J.-F., . "Economics of agglomeration," CORE Discussion Papers RP -1250, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Wheeler, Christopher H., 2006.
"Cities and the growth of wages among young workers: Evidence from the NLSY,"
Journal of Urban Economics,
Elsevier, vol. 60(2), pages 162-184, September.
- Christopher H. Wheeler, 2005. "Cities and the growth of wages among young workers: evidence from the NLSY," Working Papers 2005-055, Federal Reserve Bank of St. Louis.
- Lall, Somik V. & Shalizi, Zmarak & Deichmann, Uwe, 2004.
"Agglomeration economies and productivity in Indian industry,"
Journal of Development Economics,
Elsevier, vol. 73(2), pages 643-673, April.
- Lall, Somik & Shalizi, Zmarak & Deichmann, Uwe, 2001. "Agglomeration economies and productivity in Indian industry," Policy Research Working Paper Series 2663, The World Bank.
- Freedman, Matthew L., 2008. "Job hopping, earnings dynamics, and industrial agglomeration in the software publishing industry," Journal of Urban Economics, Elsevier, vol. 64(3), pages 590-600, November.
- Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 365-375.
- J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001.
"Geography and development,"
Journal of Economic Geography,
Oxford University Press, vol. 1(1), pages 81-105, January.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004.
"Spatial Wage Disparities: Sorting Matters!,"
CEPR Discussion Papers
4240, C.E.P.R. Discussion Papers.
- James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998.
"Characterizing Selection Bias Using Experimental Data,"
NBER Working Papers
6699, National Bureau of Economic Research, Inc.
- James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
- J. A. Hausman & D. A. Wise, 1976.
"A Conditional Profit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences,"
173, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-26, March.
- Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
- weijland, Hermine, 1999. "Microenterprise Clusters in Rural Indonesia: Industrial Seedbed and Policy Target," World Development, Elsevier, vol. 27(9), pages 1515-1530, September.
- Boomgard, James J. & Davies, Stephen P. & Haggblade, Steven J. & Mead, Donald C., 1992. "A subsector approach to small enterprise promotion and research," World Development, Elsevier, vol. 20(2), pages 199-212, February.
- repec:att:wimass:9713 is not listed on IDEAS
- Loening, Josef & Rijkers, Bob & Soderbom, Mans, 2008. "Nonfarm microenterprise performance and the investment climate : evidence from rural Ethiopia," Policy Research Working Paper Series 4577, The World Bank.
- Steel, William F. & Aryeetey, Ernest & Hettige, Hemamala & Nissanke, Machiko, 1997. "Informal financial markets under liberalization in four African countries," World Development, Elsevier, vol. 25(5), pages 817-830, May.
- Anderson, Dennis, 1982. "Small industry in developing countries: A discussion of issues," World Development, Elsevier, vol. 10(11), pages 913-948, November.
- Jianqing Ruan & Xiaobo Zhang, 2009.
"Finance and Cluster-Based Industrial Development in China,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 58(1), pages 143-164, October.
- Ruan, Jianqing & Zhang, Xiaobo, 2008. "Finance and cluster-based industrial development in China:," IFPRI discussion papers 768, International Food Policy Research Institute (IFPRI).
- de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
- Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
- Simon J. Evenett & Wolfgang Keller, 1996.
"On Theories Explaining the Success of the Gravity Equation,"
9608001, EconWPA, revised 13 Jun 1997.
- Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
- Simon J. Evenett & Wolfgang Keller, 1998. "On Theories Explaining the Success of the Gravity Equation," NBER Working Papers 6529, National Bureau of Economic Research, Inc.
- Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 7-17, Summer.
- Ron Martin & Peter Sunley, 2002.
"Deconstructing Clusters: Chaotic Concept or Policy Panacea,"
ESRC Centre for Business Research - Working Papers
wp244, ESRC Centre for Business Research.
- Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
- Hisamitsu Saito & Munisamy Gopinath, 2009. "Plants' self-selection, agglomeration economies and regional productivity in Chile," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 539-558, July.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Buckley, Graeme, 1997. "Microfinance in Africa: Is it either the problem or the solution?," World Development, Elsevier, vol. 25(7), pages 1081-1093, July.
- Lisa Daniels, 2001. "Testing alternative measures of microenterprise profits and net worth," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(5), pages 599-614.
- Ayele, Gezahegn & Moorman, Lisa & Wamisho, Kassu & Zhang, Xiaobo, 2010. "Infrastructure and cluster development," IFPRI discussion papers 980, International Food Policy Research Institute (IFPRI).
- Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
- Visser, Evert-jan, 1999. "A Comparison of Clustered and Dispersed Firms in the Small-Scale Clothing Industry of Lima," World Development, Elsevier, vol. 27(9), pages 1553-1570, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.