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Road Infrastructure and Enterprise Dynamics in Ethiopia

Author

Listed:
  • Admasu Shiferaw
  • Måns Söderbom
  • 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.

Suggested Citation

  • Admasu Shiferaw & Måns Söderbom & 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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    References listed on IDEAS

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    1. Page, John & Soderbom, Måns, 2012. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588.
    3. Naude, Wim & Matthee, Marianne, 2007. "The Significance of Transport Costs in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    4. repec:unu:wpaper:wp2012-94 is not listed on IDEAS
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    Cited by:

    1. repec:eee:wdevel:v:96:y:2017:i:c:p:198-215 is not listed on IDEAS
    2. 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.
    3. Christian K. Darko & Giovanni Occhiali & Enrico Vanino, 2018. "The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa," Working Papers 2018.14, Fondazione Eni Enrico Mattei.
    4. Eric Strobl & Marie-Anne Valfort, 2015. "The Effect of Weather-Induced Internal Migration on Local Labor Markets. Evidence from Uganda," World Bank Economic Review, World Bank Group, vol. 29(2), pages 385-412.
    5. 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.
    6. Remi Jedwab & Adam Storeygard, "undated". "Economic and Political Factors in Infrastructure Investment: Evidence from Railroads and Roads in Africa 1960–2015," Working Papers 2017-3, The George Washington University, Institute for International Economic Policy.
    7. repec:eee:wdevel:v:97:y:2017:i:c:p:178-198 is not listed on IDEAS
    8. 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.

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