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

Merima Ali and Jack Peerlings

World Development, 2011, vol. 39, issue 3, 363-374

Abstract: Summary 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.

Keywords: cluster micro enterprises propensity score matching; handloom Africa Ethiopia (search for similar items in EconPapers)
Date: 2011
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Working Paper: Value added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia (2009) Downloads
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