Spatial proximity and firm performance: evidence from non-farm rural enterprises in Ethiopia and Nigeria

Nkechi S. Owoo, Wim Naudé

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Spatial proximity and firm performance: evidence from non-farm rural enterprises in Ethiopia and Nigeria. Regional Studies. The productivity of non-farm enterprises in rural Africa can be associated with the productivity of other spatially proximate non-farm enterprises. To test for the presence and significance of such spatial autocorrelation, the article uses data from the georeferenced 2011 Ethiopian Rural Socioeconomic Survey (ERSS) and the 2010/ 2011 Nigeria General Household Survey (NGHS), and employs exploratory spatial data analyses. There is evidence of significant spatial clustering of firm performance in both countries. This spatial dependence is empirically modelled using average distance measures between firms. It is found that in addition to other household, firm and community characteristics, spatial proximity between firms plays an important role in explaining firm productivity in Nigeria and Ethiopia.

Original languageEnglish
Pages (from-to)688-700
Number of pages13
JournalRegional Studies
Volume51
Issue number5
DOIs
Publication statusPublished - May 2017

JEL classifications

  • c21 - "Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions"
  • l25 - Firm Performance: Size, Diversification, and Scope
  • m13 - "New Firms; Startups"
  • o55 - Economywide Country Studies: Africa

Keywords

  • entrepreneurship
  • Africa
  • Rural development
  • agriculture
  • firm proximity and spatial autocorrelation
  • Ethiopia
  • Nigeria
  • SPILLOVERS
  • SUB-SAHARAN AFRICA
  • ENTREPRENEURSHIP
  • rural development
  • PRODUCTIVITY
  • GROWTH
  • DEVELOPING-COUNTRIES

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