A note on MAR and Jacobs externalities in the Tunisian manufacturing industries

Amara Mohamed () and AbdelRahmen El Lahga ()

Letters in Spatial and Resource Sciences, 2015, vol. 8, issue 2, 167 pages

Abstract: The aim of this paper is to identify the effect of neighborhood peer groups on firm’s performance, approximated by the value added per worker. More specifically, we distinguish between the effects of own firm’s characteristics (direct effects) and mean characteristics of their neighbors (endogenous and contextual effects) on its output level. Using the Conditional Maximum Likelihood estimator proposed by Lee (J Econom, 140(2):333–374, 2007 ) on Tunisian data, we show that the average value added per worker of peers affect significantly individual firm’s performance. In addition, contextual peer effects are also significant. The multiplier effect on labor productivity varies between 1.6 and 2.03 according to the reference group definition. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Labor productivity; Peers effects; Endogenous effects; Contextual effects; Social networks; Tunisia; C31; J24; L14; R32 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s12076-014-0121-3

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