Research for Development and Justice

Poverty Dynamics

cluster; microenterprises; propensity score matching, handloom; Africa; Ethiopia

Countries and regions:

ValueAdded of ClusterMembership for MicroEnterprises of the HandloomSector in Ethiopia

Merima Ali and Jack Peerlings (2011)

in World Development vol. 39 no. 3 pp. 363-374


By contrasting the performance of clustered microenterprises with that of dispersed ones in the handloomsector in Ethiopia, this study shows that clustering significantly increases profit. To correct for selection bias, we match clustered and dispersed microenterprises 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 microenterprises are different in urban and rural areas, highlighting the need to focus on local circumstances when formulating policies to promote clusters.


Publications with same geographic focus:

Book Chapter

When Per Diems Take Over: Training and Travel as Extra Pay

Ingvild Aagedal Skage, Tina Søreide, Arne Tostensen (2014) in Tina Søreide, Aled Williams: Corruption, Grabbing and Development: Real World Challenges. Cheltenham and Northamption (MA): Edward Elgar Publishing

Journal Article (Peer-Reviewed)

Health inequalities in Ethiopia: modeling inequalities in length of life within and between population groups

Eirik Joakim Tranvåg, Merima Ali and Ole Frithjof Norheim (2013) in International Journal for Equity in Health vol. 10.1186/1475-9276-12

Publications within same theme:

Book Chapter

Resource curse

Ivar Kolstad (forthcoming) in Vodosek, M. and Hartog, D. v. (eds.): Wiley Encyclopedia of Management, 3rd edition, Volume 6 International Management. West Sussex: John Wiley & Sons

Journal Article (Peer-Reviewed)

Poverty Dynamics in Rural Orissa: Transitions in Assets and Occupations over Generations

Magnus Hatlebakk (2014) in Journal of Development Studies

Publications with similar keywords:

Journal Article (Peer-Reviewed)

Farm households and nonfarm activities in Ethiopia: Does clustering influence entry and exit?

Merima Ali and Jack Peerlings (2012) in Agricultural Economics vol. 43 no. 3 pp. 253-266

CMI Report

Government's role in cluster development for MSEs: Lessons from Ethiopia

Merima Ali (2012) Bergen: Chr. Michelsen Institute (CMI Report R 2012:2) 24 p.


Merima Ali

Economist focusing micro-economic analysis of small-scale industries, informal networks, Taxation Quality of health care and health systems.

By the same author:

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