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A note on MAR and Jacobs externalities in the Tunisian manufacturing industries

Listed author(s):
  • Mohamed Amara

    ()

  • AbdelRahmen El Lahga

    ()

The aim of this paper is to identify the effect of neighborhood peer groups on firm’s performance, approximated by the value added per worker. More specifically, we distinguish between the effects of own firm’s characteristics (direct effects) and mean characteristics of their neighbors (endogenous and contextual effects) on its output level. Using the Conditional Maximum Likelihood estimator proposed by Lee (J Econom, 140(2):333–374, 2007 ) on Tunisian data, we show that the average value added per worker of peers affect significantly individual firm’s performance. In addition, contextual peer effects are also significant. The multiplier effect on labor productivity varies between 1.6 and 2.03 according to the reference group definition. Copyright Springer-Verlag Berlin Heidelberg 2015

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File URL: http://hdl.handle.net/10.1007/s12076-014-0121-3
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Article provided by Springer in its journal Letters in Spatial and Resource Sciences.

Volume (Year): 8 (2015)
Issue (Month): 2 (July)
Pages: 151-167

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Handle: RePEc:spr:lsprsc:v:8:y:2015:i:2:p:151-167
DOI: 10.1007/s12076-014-0121-3
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Order Information: Web: http://www.springer.com/economics/journal/12076

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