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Determinants of manufacturing micro firms' productivity in Ecuador. Do industry and canton where they operate matter?

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  • Grace Carolina Guevara‐Rosero

Abstract

This study aims to identify the productivity determinants of manufacturing micro firms, emphasizing on regional and industrial factors. A cross‐classified multilevel model is employed using the Economic Census of 2010 from Ecuador. Results show (90.1%) that the heterogeneity of the total factor productivity of micro formal firms of the manufacturing sector is mainly due to differences across firms. The remaining variation of the TFP is explained to a larger extent by the industrial context (5.8%) than the geographical context (4.1%). Among firm characteristics, information and communication technologies, credit and training are important drivers of productivity. Despite this, very few micro firms use the Internet, have credit access or engage in training in Ecuador. Moreover, micro firms benefit from agglomeration economies derived from specialization, diversity and density that they themselves generate. Este estudio tiene por objeto identificar los determinantes de la productividad de las microempresas manufactureras, haciendo hincapié en los factores regionales e industriales. Se empleó un modelo multinivel de clasificación cruzada utilizando el Censo Económico de 2010 de Ecuador. Los resultados (90,1%) muestran que la heterogeneidad de la productividad total de los factores (PTF) de las microempresas formales del sector manufacturero se debe principalmente a las diferencias entre empresas. La variación restante de la PTF se explica en mayor medida por el contexto industrial (5,8%) que por el contexto geográfico (4,1%). Entre las características de las empresas, las tecnologías de la información y la comunicación, el crédito y la formación son impulsores importantes de la productividad. A pesar de ello, muy pocas microempresas utilizan Internet, tienen acceso al crédito o participan en actividades de formación en Ecuador. Además, las microempresas se benefician de las economías de aglomeración derivadas de la especialización, la diversidad y la densidad que ellas mismas generan. 本稿の目的は、地域的および産業的要因に重点を置いて、製造業の零細企業の生産性の決定因子を特定することである。2010年のエクアドルの経済センサスのデータを用いて、クロス分類マルチレベルモデル (cross‐classified multilevel model)で分析を行った。製造業部門のフォーマルな零細企業の全要素生産性 (TFP)の不均一性は、主に企業間の差異に起因している(90.1%)。TFPの残りの変動は、地理的背景(4.1%)よりも産業的背景(5.8%)により説明される部分が多い。企業の特徴のうち、情報通信技術、信用、教育研修は生産性の重要な決定因子である。それにもかかわらず、エクアドルでは、インターネットを利用し、融資を受け、研修を行う零細企業はほとんどない。さらに、零細企業は、零細企業自らが作り出す専門性、多様性、密度から生まれる集積経済からベネフィットを得る。

Suggested Citation

  • Grace Carolina Guevara‐Rosero, 2021. "Determinants of manufacturing micro firms' productivity in Ecuador. Do industry and canton where they operate matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1215-1248, August.
  • Handle: RePEc:bla:rgscpp:v:13:y:2021:i:4:p:1215-1248
    DOI: 10.1111/rsp3.12399
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