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Infrastructure and cluster development: A case study of handloom weavers in Ethiopia

Author

Listed:
  • Ayele, Gezahegn
  • Chamberlin, Jordan
  • Moorman, Lisa
  • Wamisho, Kassu
  • Zhang, Xiaobo

Abstract

Rural non-farm development plays a key role in generating employment in many developing countries. Clustering is an important industrial organization in the rural non-farm sector. Based on primary surveys of both urban and rural handloom weaver clusters in Ethiopia which took place in May/June 2008, one of the most important rural nonfarm sectors, this paper examines the mechanism and performance of clustering. The clustering way of handloom production is observed even in remote rural areas, illustrating its vitality and flexibility in adapting to restricted environments. Despite its resilience in surviving in harsh environments, improvements in infrastructure can significantly increase labor productivity in a cluster. In towns with electricity access, producers work longer hours than those in towns without electricity and more entrepreneurs with limited access to capital are able to participate in handloom production because of finer division of labor.

Suggested Citation

  • Ayele, Gezahegn & Chamberlin, Jordan & Moorman, Lisa & Wamisho, Kassu & Zhang, Xiaobo, 2009. "Infrastructure and cluster development: A case study of handloom weavers in Ethiopia," ESSP discussion papers 1, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:esspdp:1
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    Cited by:

    1. David Stifel & Tassew Woldehanna, 2014. "Utility-Consistent Poverty in Ethiopia, 2000-11: Welfare Improvements in a Changing Economic Landscape," WIDER Working Paper Series wp-2014-125, World Institute for Development Economic Research (UNU-WIDER).
    2. Ali, Merima & Peerlings, Jack, 2011. "Value Added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia," World Development, Elsevier, vol. 39(3), pages 363-374, March.
    3. Dorosh, Paul A. & Schmidt, Emily, 2010. "The rural-urban transformation in Ethiopia," ESSP working papers 13, International Food Policy Research Institute (IFPRI).
    4. Chamberlin, Jordan & Schmidt, Emily, 2012. "Ethiopian Agriculture: A dynamic geographic perspective," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.), Food and agriculture in Ethiopia: Progress and policy challenges, chapter 2, International Food Policy Research Institute (IFPRI).
    5. Stifel, David & Woldehanna, Tassew, 2014. "Utility-consistent poverty in Ethiopia, 2000-11: Welfare improvements in a changing economic landscape," WIDER Working Paper Series 125, World Institute for Development Economic Research (UNU-WIDER).
    6. Ali, Merima & Peerlings, Jack & Zhang, Xiaobo, 2010. "Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia," IFPRI discussion papers 1045, International Food Policy Research Institute (IFPRI).

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