Value added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia

By contrasting the performance of clustered micro enterprises with that of dispersed ones in the handloom sector in Ethiopia, this study shows that clustering significantly increases profit. To correct for selection bias, we match clustered and dispersed micro enterprises that share similar observable characteristics except for being clustered both in urban and rural areas. Results show that clustering is more profitable in urban than rural areas. It is also found that regional specific factors determining clustering of micro enterprises are different in urban and rural areas, highlighting the need to focus on local circumstances when formulating policies to promote clusters.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/49922
Total Pages:
25
JEL Codes:
L10; L67; R12
Series Statement:
Contributed paper
332




 Record created 2017-04-01, last modified 2017-08-25

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