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Road Infrastructure and Enterprise Dynamics in Ethiopia

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  • Admasu Shiferaw
  • M�ns S�derbom
  • Eyerusalem Siba
  • Getnet Alemu

Abstract

We analyse the relationship between road infrastructure quality and the location choice and entry size of manufacturing firms in Ethiopia. We use GIS-based panel data on town-level measures of road infrastructure and census-based panel data on firms. Our dataset covers a period of considerable improvements in road infrastructure as a result of major public investments. We find that local infrastructure is important for entry, while more extensive market connectivity is important for the entry of large firms. We conclude that improved infrastructure has been associated with favourable outcomes with respect to entry patterns and firm size in Ethiopia's manufacturing sector.

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  • Admasu Shiferaw & M�ns S�derbom & Eyerusalem Siba & Getnet Alemu, 2015. "Road Infrastructure and Enterprise Dynamics in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1541-1558, November.
    • Handle: RePEc:taf:jdevst:v:51:y:2015:i:11:p:1541-1558
    DOI: 10.1080/00220388.2015.1056785
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    1. Sam Jones & John Page & Abebe Shimeles & Finn Tarp & John Page & Måns Söderbom, 2015. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," African Development Review, African Development Bank, vol. 27(S1), pages 44-55, October.
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    Cited by:

    1. Boto-Garcia, David & Leoni, Veronica, 2022. "Estimating the dynamic effects of volcano eruptions on domestic tourism: Evidence based on mobile-phone geo-positioning records," Efficiency Series Papers 2022/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Busso, Matías & Fentanes, Oscar, 2024. "Building Up Local Productivity: Infrastructure and Firm Dynamics in Mexico," IDB Publications (Working Papers) 13759, Inter-American Development Bank.
    3. Luis Orea & Inmaculada Álvarez-Ayuso & Luis Servén, 2024. "The Structural and Productivity Effects of Infrastructure Provision in Developed and Developing Countries," Advances in Econometrics, in: Essays in Honor of Subal Kumbhakar, volume 46, pages 265-308, Emerald Group Publishing Limited.
    4. Christian Darko & Giovanni Occhiali & Enrico Vanino, 2021. "The Chinese are Here: Import Penetration and Firm Productivity in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 57(12), pages 2112-2135, December.
    5. Eric Strobl & Marie-Anne Valfort, 2015. "The Effect of Weather-Induced Internal Migration on Local Labor Markets. Evidence from Uganda," The World Bank Economic Review, World Bank, vol. 29(2), pages 385-412.
    6. Tesfaye T. Lemma & Tendai Gwatidzo & Mthokozisi Mlilo, 2023. "Gender differences in business performance: evidence from Kenya and South Africa," Small Business Economics, Springer, vol. 60(2), pages 591-614, February.
    7. Matteo Fiorini & Marco Sanfilippo, 2022. "Roads and Jobs in Ethiopia [When Should You Adjust Standard Errors for Clustering?”]," The World Bank Economic Review, World Bank, vol. 36(4), pages 999-1020.
    8. Jan Willem Gunning & Pramila Krishnan & Andualem T. Mengistu, 2024. "Fading choice: transport costs and variety in consumer goods," Economica, London School of Economics and Political Science, vol. 91(363), pages 1100-1123, July.
    9. Andrew Kerr & Bruce McDougall, 2020. "What is a firm census in a developing country? An answer from Ghana," SALDRU Working Papers 262, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Remi Jedwab & Adam Storeygard, 2019. "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Economic History of Developing Regions, Taylor & Francis Journals, vol. 34(2), pages 156-208, May.
    11. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    12. Elena Perra, & Sanfilippo, Marco & Sundaram, Asha, 2022. "Roads, Competition, and the Informal Sector," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202221, University of Turin.
    13. Daniel A. Mekonnen & Elise F. Talsma & Laura Trijsburg & Vincent Linderhof & Thom Achterbosch & Aafke Nijhuis & Ruerd Ruben & Inge D. Brouwer, 2020. "Can household dietary diversity inform about nutrient adequacy? Lessons from a food systems analysis in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1367-1383, December.
    14. Zheming Liu & Bin Li & Saixing Zeng & Hongquan Chen, 2020. "Spillovers from transport infrastructures onto firm productivity: An analytical and empirical study," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1583-1609, November.
    15. Darko, Christian K. & Occhiali, Giovanni & Vanino, Enrico, 2018. "The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa," ETA: Economic Theory and Applications 273142, Fondazione Eni Enrico Mattei (FEEM).
    16. repec:hal:pseose:halshs-00977051 is not listed on IDEAS
    17. Admasu Shiferaw, 2016. "Constraints to Private Investment in a High-Growth Environment: Firm-level Evidence from Ethiopia," Working Papers 168, Department of Economics, College of William and Mary.
    18. Moller, Lars Christian & Wacker, Konstantin M., 2017. "Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy," World Development, Elsevier, vol. 96(C), pages 198-215.
    19. Elena Perra, 2022. "Road to Division: Ethnic Favouritism in the Provision of Road Infrastructure in Ethiopia," Working Papers - Economics wp2022_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    20. Bayissa Badada & G. Delina & Sun Baiqing & Ramaswamy Krishnaraj, 2023. "Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment," SAGE Open, , vol. 13(1), pages 21582440231, March.
    21. Rajesh SN Raj & Kunal Sen, 2016. "Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    22. Daniel Gurara & Dawit Tessema, 2018. "Losing to Blackouts: Evidence from Firm Level Data," IMF Working Papers 2018/159, International Monetary Fund.
    23. Moller,Lars Christian & Wacker,Konstantin M., 2015. "Ethiopia?s growth acceleration and how to sustain it?insights from a cross-country regression model," Policy Research Working Paper Series 7292, The World Bank.
    24. Lashitew, Addisu A., 2017. "The Uneven Effect of Financial Constraints: Size, Public Ownership, and Firm Investment in Ethiopia," World Development, Elsevier, vol. 97(C), pages 178-198.
    25. Fiorini, Matteo & Sanfilippo, Marco & Sundaram, Asha, 2021. "Trade liberalization, roads and firm productivity," Journal of Development Economics, Elsevier, vol. 153(C).

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