IDEAS home Printed from https://ideas.repec.org/p/jic/wpaper/74.html
   My bibliography  Save this paper

Effects of Transport Corridor Development on Firms’ Locational Choice and Firms’ Perception of Business Environment: A Preliminary Analysis of Transport Corridors in Mozambique

Author

Listed:
  • Fujita, Yasuo
  • Takeda, Asami

Abstract

This paper aims to conduct a preliminary analysis of the expected effects of a transport infrastructure project on firms’ locational choice and business environment in Mozambique, using a baseline firm survey. We compare firms’ locational choice factors and their perceptions of the business environment between the underdeveloped Nacala corridor, where a road improvement project is being implemented, and the well-developed Beira corridor as a comparator. On the firms’ locational choice, we find a statistically significant difference between the two corridors, after controlling for firms’ characteristics. While the firms emphasize closeness to customers in the Beira corridor, the firms emphasize better infrastructure in the Nacala corridor. We also find statistically significant differences in some business environment factors between the two corridors. In the Nacala corridor, the firms consider transport infrastructure to be problematic for operation and growth. In the Beira corridor, the firms believe some factors related to government administration and regulations are obstacles. These results are still preliminary. At this stage of our research, we can only point out the possibility that the conditions of transport infrastructure may affect private firms’ self-evaluation of their locational choice and their business environment.

Suggested Citation

  • Fujita, Yasuo & Takeda, Asami, 2014. "Effects of Transport Corridor Development on Firms’ Locational Choice and Firms’ Perception of Business Environment: A Preliminary Analysis of Transport Corridors in Mozambique," Working Papers 74, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:74
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10685/136
    Download Restriction: no
    File URL: https://jicari.repo.nii.ac.jp/?action=repository_uri&item_id=683&file_id=9&file_no=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, The World Bank.
    2. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés, 2011. "Big Constraints to Small Firms' Growth? Business Environment and Employment Growth across Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 609-647.
    3. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
    4. LaFountain, Courtney, 2005. "Where do firms locate? Testing competing models of agglomeration," Journal of Urban Economics, Elsevier, vol. 58(2), pages 338-366, September.
    5. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    6. Antonio Estache & Marianne Fay, 2009. "Current Debates on Infrastructure Policy," World Bank Publications - Books, The World Bank Group, number 27762, December.
    7. Songqing Jin & Klaus Deininger, 2009. "Key Constraints for Rural Non-Farm Activity in Tanzania: Combining Investment Climate and Household Surveys," Journal of African Economies, Centre for the Study of African Economies, vol. 18(2), pages 319-361, March.
    8. Uwe Deichmann & Somik V. Lall & Stephen J. Redding & Anthony J. Venables, 2008. "Industrial Location in Developing Countries," The World Bank Research Observer, World Bank, vol. 23(2), pages 219-246, May.
    9. Mccormick, Dorothy, 1999. "African Enterprise Clusters and Industrialization: Theory and Reality," World Development, Elsevier, vol. 27(9), pages 1531-1551, September.
    10. Aterido, Reyes & Hallward-Driemeier, Mary, 2010. "The impact of the investment climate on employment growth : does Sub-Saharan Africa mirror other low-income regions ?," Policy Research Working Paper Series 5218, The World Bank.
    11. Deichmann, Uwe & Kaiser, Kai & Lall, Somik V & Shalizi, Zmarak, 2005. "Agglomeration, transport, and regional development in Indonesia," Policy Research Working Paper Series 3477, The World Bank.
    12. Muto, Megumi & Yessica & Chung, C.Y. & Shimikoshi, Shinobu, 2011. "Location Choice and Performance of Furniture Workshops in Arusha, Tanzania," Working Papers 28, JICA Research Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," Edinburgh School of Economics Discussion Paper Series 179, Edinburgh School of Economics, University of Edinburgh.
    2. Seker, Murat & Yang, Judy S., 2012. "How bribery distorts firm growth : differences by firm attributes," Policy Research Working Paper Series 6046, The World Bank.
    3. Eric Manes, 2009. "Pakistan's Investment Climate : Laying the Foundation for Growth, Volume 2. Annexes," World Bank Publications - Reports 12411, The World Bank Group.
    4. Şeker, Murat & Yang, Judy S., 2014. "Bribery solicitations and firm performance in the Latin America and Caribbean region," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 246-264.
    5. Judy S. Yang, 2017. "The governance environment and innovative SMEs," Small Business Economics, Springer, vol. 48(3), pages 525-541, March.
    6. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    7. Afeikhena Jerome, 2011. "Infrastructure, Economic Growth and Poverty Reduction in Africa," Journal of Infrastructure Development, India Development Foundation, vol. 3(2), pages 127-151, December.
    8. Patrick PLANE & Tidiane KINDA & Mohamed CHAFFAI, 2009. "Textile manufacturing in eight developing countries:How far does the business environment explain firms’ productive inefficiency?," Working Papers 200923, CERDI.
    9. Fang, Sheng & Goh, Chorching & Roberts, Mark & Xu, Lixin Colin & Zeufack, Albert, 2022. "Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality," World Development, Elsevier, vol. 154(C).
    10. Jennifer Day & Peter Ellis, 2013. "Growth in Indonesia's manufacturing sectors: Urban and localization contributions," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(3), pages 343-368, August.
    11. Yinhao Wu & Shumin Yu & Xiangdong Duan, 2021. "The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect," IJERPH, MDPI, vol. 18(8), pages 1-14, April.
    12. Tidiane Kinda & Patrick Plane & Marie‐Ange Véganzonès‐Varoudakis, 2011. "Firm Productivity And Investment Climate In Developing Countries: How Does Middle East And North Africa Manufacturing Perform?," The Developing Economies, Institute of Developing Economies, vol. 49(4), pages 429-462, December.
    13. Muto, Megumi & Yessica & Chung, C.Y. & Shimikoshi, Shinobu, 2011. "Location Choice and Performance of Furniture Workshops in Arusha, Tanzania," Working Papers 28, JICA Research Institute.
    14. Mano, Yukichi & 真野, 裕吉 & Suzuki, Aya & 鈴木, 綾, 2013. "Measuring Agglomeration Economies: The Case of the Ethiopian Cut Flower Industry," Discussion Papers 2013-04, Graduate School of Economics, Hitotsubashi University.
    15. Amin,Mohammad, 2021. "Does Competition from Informal Firms Hurt Job Creation by Formal Firms ? Evidence Using Firm-Level Survey Data," Policy Research Working Paper Series 9515, The World Bank.
    16. Junqian Wu & Xiaoqian Liu & Jianqing Ruan & Xiulin Qi & Chang’an Wang & Dan Fan, 2021. "Space Power in Inclusive Development: Industrial Clusters and Rural Anti-Poverty," IJERPH, MDPI, vol. 18(20), pages 1-13, October.
    17. Ibrahim Mike Okumu & Edward Bbaale & Madina Mwagale Guloba, 2019. "Innovation and employment growth: evidence from manufacturing firms in Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-27, December.
    18. Rijkers, Bob & Söderbom, Måns & Loening, Josef L., 2010. "A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia," World Development, Elsevier, vol. 38(9), pages 1278-1296, September.
    19. Mohammad Amin, 2023. "Does competition from informal firms hurt job creation by formal manufacturing SMEs in developing and emerging countries? Evidence using firm-level survey data," Small Business Economics, Springer, vol. 60(4), pages 1659-1681, April.
    20. Chih Cheng CHEN, 2013. "Industry Agglomeration and Wage Differentiation: An Empirical Study on Taiwan’s Manufacturing Industry," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 147-160.

    More about this item

    Keywords

    Transport infrastructure ; Locational choice ; Business environment ; Impact analysis ; Mozambique;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jic:wpaper:74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Japan International Cooperation Agency Library (email available below). General contact details of provider: https://edirc.repec.org/data/jicgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.