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:

Journal Article (Peer-Reviewed)

Ethiopia After Meles: Stability for How Long?

Lovise Aalen (2014) in Current History vol. May 2014

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

Publications within same theme:

Book Chapter

Micro effects of natural resources: Insights from a survey of Angolan microcredit clients

Allan Cain, Ivar Kolstad and Arne Wiig (forthcoming) in A. Grant, W. R. N. Compaoré, and M. Mitchell: New Approaches to the Governance of Natural Resources: Insights from Africa. New York: Palgrave Macmillan

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)

Returns to education among entrepreneurs in Bangladesh

Ivar Kolstad, Arne Wiig and Khondaker Golam Moazzem (2014) in Journal of Asian Economics vol. 34 pp. 54-65

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


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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