Road Infrastructure and Enterprise Dynamics in Ethiopia |
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| Authors: | Admasu Shiferaw Måns Söderbom Eyerusalem Siba Getnet Alemu |
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| Affiliation: | 1. Economics Department, The College of William and Mary, Williamsburg, USA;2. School of Economics, University of Gothenburg, Gothenburg, Sweden;3. College of Development Studies, Addis Ababa University, Addis Ababa, Ethiopia |
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| Abstract: | We analyse the relationship between road infrastructure quality and the location choice and entry size of manufacturing firms in Ethiopia. We use GIS-based panel data on town-level measures of road infrastructure and census-based panel data on firms. Our dataset covers a period of considerable improvements in road infrastructure as a result of major public investments. We find that local infrastructure is important for entry, while more extensive market connectivity is important for the entry of large firms. We conclude that improved infrastructure has been associated with favourable outcomes with respect to entry patterns and firm size in Ethiopia’s manufacturing sector. |
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