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Impacts of a Micro-Enterprise Clustering Program on Firm Performance in Ghana

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  • Peters, Jörg
  • Sievert, Maximiliane
  • Strupat, Christoph

Abstract

Widely considered as an important backbone of economies in developing countries, micro- and small enterprises face several constraints in doing business in Ghana. The creation of industrial zones (IZ) with improved access to infrastructure and secured land tenure is a potential remedy to promote local economic development. In this paper, we assess the effects of an intervention on business performance that establishes or upgrades IZs for micro- and small enterprises in Ghana based on firm-level data on 227 enterprises. Lacking reliable baseline data and an appropriate control group, we use retrospective questions to reconstruct the situation before the intervention. Furthermore, in order to account for general changes in the local economic environment, we examine regional agricultural market development over time. The results show that the establishment of IZs leads to the creation of new firms, but for existing firms that relocated to the IZs the effects on firm performance are negative.

Suggested Citation

  • Peters, Jörg & Sievert, Maximiliane & Strupat, Christoph, 2013. "Impacts of a Micro-Enterprise Clustering Program on Firm Performance in Ghana," Ruhr Economic Papers 407, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:407
    DOI: 10.4419/86788462
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    Cited by:

    1. Ana Pueyo & Simon Bawakyillenuo & Marco Carreras, 2020. "Energy Use and Enterprise Performance in Ghana: How Does Gender Matter?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 1249-1287, September.

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    More about this item

    Keywords

    project evaluation; firm clustering; micro-enterprises;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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