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

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  • Jörg Peters

    (1] Rheinisch-Westf&aauml;lisches Institut für Wirtschaftsforschung (RWI), Essen, Germany[2] AMERU, University of the Witwatersrand, Johannesburg, South Africa)

  • Maximiliane Sievert

    (Rheinisch-Westf&aauml;lisches Institut für Wirtschaftsforschung (RWI), Essen, Germany)

  • Christoph Strupat

    (University of Duisburg, Essen, Germany)

Abstract

Widely considered an important backbone of economies in developing countries, micro- and small enterprises face several growth constraints. The creation of industrial zones (IZs) with improved access to infrastructure and secure land tenure is a potential remedy to promote local economic development. We assess the effects of an intervention on business performance indicators that establishes IZs for micro-enterprises in Ghana based on firm-level data on 227 enterprises. 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

  • Jörg Peters & Maximiliane Sievert & Christoph Strupat, 2015. "Impacts of a Micro-Enterprise Clustering Programme on Firm Performance in Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 99-121, January.
  • Handle: RePEc:pal:eurjdr:v:27:y:2015:i:1:p:99-121
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    References listed on IDEAS

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    1. Blien, Uwe & Suedekum, Jens & Wolf, Katja, 2006. "Local employment growth in West Germany: A dynamic panel approach," Labour Economics, Elsevier, vol. 13(4), pages 445-458, August.
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    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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