Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia
Transport connectivity is among the most important factors in increasing firm productivity and accelerating economic development. The literature generally supports the idea of agglomeration economies, although there is little evidence of their effe...
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| Format: | Working Paper |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/327291524055808723/Firm-location-transport-connectivity-and-agglomeration-economies-Evidence-from-Liberia http://hdl.handle.net/10986/29713 |
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okr-10986-297132022-03-13T01:39:15Z Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia Iimi, Atsushi Rao, Kulwinder TRANSPORT REGIONAL INTEGRATION SPATIAL ANALYSIS FIRM LOCATION LOGIT MODEL INFRASTRUCTURE INVESTMENT MARKET ACCESS REMOTE AREA UNPAVED ROAD URBANIZATION Transport connectivity is among the most important factors in increasing firm productivity and accelerating economic development. The literature generally supports the idea of agglomeration economies, although there is little evidence of their effectiveness in Africa. There are often empirical challenges, such as spatial externalities and endogeneity of infrastructure development. Using firm registry data in Liberia, this study used the instrumental variable spatial autoregressive model to examine the effects of transport connectivity on firms' decisions on where to locate. The study found significant spatial autocorrelation and possible endogeneity related to transport infrastructure, and that firms are more likely to be located where market accessibility is better. The data indicated strong agglomeration economies, indicating that the primary city, Monrovia, is likely to continue to grow and attract more people and firms, and that secondary cities can also grow with greater transport connectivity between populated areas, such as district centers. 2018-04-20T15:33:00Z 2018-04-20T15:33:00Z 2018-04 Working Paper http://documents.worldbank.org/curated/en/327291524055808723/Firm-location-transport-connectivity-and-agglomeration-economies-Evidence-from-Liberia http://hdl.handle.net/10986/29713 English Policy Research Working Paper;No. 8411 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Liberia |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
TRANSPORT REGIONAL INTEGRATION SPATIAL ANALYSIS FIRM LOCATION LOGIT MODEL INFRASTRUCTURE INVESTMENT MARKET ACCESS REMOTE AREA UNPAVED ROAD URBANIZATION |
| spellingShingle |
TRANSPORT REGIONAL INTEGRATION SPATIAL ANALYSIS FIRM LOCATION LOGIT MODEL INFRASTRUCTURE INVESTMENT MARKET ACCESS REMOTE AREA UNPAVED ROAD URBANIZATION Iimi, Atsushi Rao, Kulwinder Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| geographic_facet |
Africa Liberia |
| relation |
Policy Research Working Paper;No. 8411 |
| description |
Transport connectivity is among the most
important factors in increasing firm productivity and
accelerating economic development. The literature generally
supports the idea of agglomeration economies, although there
is little evidence of their effectiveness in Africa. There
are often empirical challenges, such as spatial
externalities and endogeneity of infrastructure development.
Using firm registry data in Liberia, this study used the
instrumental variable spatial autoregressive model to
examine the effects of transport connectivity on firms'
decisions on where to locate. The study found significant
spatial autocorrelation and possible endogeneity related to
transport infrastructure, and that firms are more likely to
be located where market accessibility is better. The data
indicated strong agglomeration economies, indicating that
the primary city, Monrovia, is likely to continue to grow
and attract more people and firms, and that secondary cities
can also grow with greater transport connectivity between
populated areas, such as district centers. |
| format |
Working Paper |
| author |
Iimi, Atsushi Rao, Kulwinder |
| author_facet |
Iimi, Atsushi Rao, Kulwinder |
| author_sort |
Iimi, Atsushi |
| title |
Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| title_short |
Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| title_full |
Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| title_fullStr |
Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| title_full_unstemmed |
Firm Location, Transport Connectivity, and Agglomeration Economies : Evidence from Liberia |
| title_sort |
firm location, transport connectivity, and agglomeration economies : evidence from liberia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/327291524055808723/Firm-location-transport-connectivity-and-agglomeration-economies-Evidence-from-Liberia http://hdl.handle.net/10986/29713 |
| _version_ |
1764470043497725952 |