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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Bibliographic Details
Main Authors: Rijkers, Bob, Soderbom, Mans, Loening, Josef L.
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4889
id okr-10986-4889
recordtype oai_dc
spelling 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
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