A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia
Manufacturing enterprises in rural and urban Ethiopia are compared to examine how location and investment climate characteristics affect performance. Urban firms are larger, more capital intensive and have higher labor productivity than rural firms, yet there is no strong evidence of increasing retu...
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okr-10986-48892021-04-23T14:02:20Z A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia Rijkers, Bob Soderbom, Mans Loening, Josef L. Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies Capacity G310 Firm Performance: Size, Diversification, and Scope L250 Industry Studies: Manufacturing: General L600 Industrialization Manufacturing and Service Industries Choice of Technology O140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Manufacturing enterprises in rural and urban Ethiopia are compared to examine how location and investment climate characteristics affect performance. Urban firms are larger, more capital intensive and have higher labor productivity than rural firms, yet there is no strong evidence of increasing returns to scale. The hypothesis that firms in rural towns have the same average total factor productivity as urban firms is not rejected; however, firms in remote rural areas are less productive. Rural firms grow less quickly than urban firms. These results can partly be attributed to differences in the quality of infrastructure, access to credit and transportation costs across rural and urban areas. Since rural firms operate in a business environment that is very different from its urban counterpart, lessons derived from urban investment climate surveys cannot immediately be transferred to rural areas. 2012-03-30T07:30:14Z 2012-03-30T07:30:14Z 2010 Journal Article World Development 0305750X http://hdl.handle.net/10986/4889 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Ethiopia |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
EN |
topic |
Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies Capacity G310 Firm Performance: Size, Diversification, and Scope L250 Industry Studies: Manufacturing: General L600 Industrialization Manufacturing and Service Industries Choice of Technology O140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 |
spellingShingle |
Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Capital Budgeting Fixed Investment and Inventory Studies Capacity G310 Firm Performance: Size, Diversification, and Scope L250 Industry Studies: Manufacturing: General L600 Industrialization Manufacturing and Service Industries Choice of Technology O140 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Rijkers, Bob Soderbom, Mans Loening, Josef L. A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
geographic_facet |
Ethiopia |
relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
description |
Manufacturing enterprises in rural and urban Ethiopia are compared to examine how location and investment climate characteristics affect performance. Urban firms are larger, more capital intensive and have higher labor productivity than rural firms, yet there is no strong evidence of increasing returns to scale. The hypothesis that firms in rural towns have the same average total factor productivity as urban firms is not rejected; however, firms in remote rural areas are less productive. Rural firms grow less quickly than urban firms. These results can partly be attributed to differences in the quality of infrastructure, access to credit and transportation costs across rural and urban areas. Since rural firms operate in a business environment that is very different from its urban counterpart, lessons derived from urban investment climate surveys cannot immediately be transferred to rural areas. |
format |
Journal Article |
author |
Rijkers, Bob Soderbom, Mans Loening, Josef L. |
author_facet |
Rijkers, Bob Soderbom, Mans Loening, Josef L. |
author_sort |
Rijkers, Bob |
title |
A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
title_short |
A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
title_full |
A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
title_fullStr |
A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
title_full_unstemmed |
A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia |
title_sort |
rural-urban comparison of manufacturing enterprise performance in ethiopia |
publishDate |
2012 |
url |
http://hdl.handle.net/10986/4889 |
_version_ |
1764393121566687232 |