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Enterprise Agglomeration, Output Prices, and Physical Productivity: Firm-Level Evidence from Ethiopia

Author

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  • Eyerusalem Siba
  • Måns Söderbom
  • Arne Bigsten
  • Mulu Gebreeyesus

Abstract

We use census panel data on Ethiopian manufacturing firms to analyze the connections between enterprise agglomeration, firm-level output prices and physical productivity. We find a negative and statistically significant relationship between the agglomeration of firms that produce a given product in a given location and the price of that product in the location. We further find a positive and statistically significant relationship between the agglomeration of firms that produce a given product in a location and the physical productivity of firms in the same location producing that product.

Suggested Citation

  • Eyerusalem Siba & Måns Söderbom & Arne Bigsten & Mulu Gebreeyesus, 2012. "Enterprise Agglomeration, Output Prices, and Physical Productivity: Firm-Level Evidence from Ethiopia," WIDER Working Paper Series wp-2012-085, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2012-085
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    References listed on IDEAS

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    Cited by:

    1. Alan Gelb & Vijaya Ramachandran & Christian J. Meyer & Divyanshi Wadhwa & Kyle Navis, 2020. "Can Sub-Saharan Africa Be a Manufacturing Destination? Labor Costs, Price Levels, and the Role of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 335-357, June.

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    Keywords

    Industrial productivity; Manufacturing industries; Prices;
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