Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia
Using data from microenterprises of the handloom sector in four regions of Ethiopia, the paper shows that clustering, through specialization and division of labor, can lower entry barriers by reducing the initial capital required to start a business. This effect is found to be significantly larger f...
| Autores principales: | , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2010
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/153748 |
| _version_ | 1855527224882495488 |
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| author | Ali, Merima Peerlings, Jack Zhang, Xiaobo |
| author_browse | Ali, Merima Peerlings, Jack Zhang, Xiaobo |
| author_facet | Ali, Merima Peerlings, Jack Zhang, Xiaobo |
| author_sort | Ali, Merima |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Using data from microenterprises of the handloom sector in four regions of Ethiopia, the paper shows that clustering, through specialization and division of labor, can lower entry barriers by reducing the initial capital required to start a business. This effect is found to be significantly larger for microenterprises investing in districts with higher levels of capital market inefficiency, indicating the importance of clustering as an organizational response to a constrained credit environment. The findings highlight the importance of cluster-based industrial activities as an alternative method of propagating industrialization when local conditions do not allow easy access to credit. |
| format | Artículo preliminar |
| id | CGSpace153748 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2010 |
| publishDateRange | 2010 |
| publishDateSort | 2010 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1537482025-11-06T06:25:10Z Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia Ali, Merima Peerlings, Jack Zhang, Xiaobo industrialization finance microenterprises Using data from microenterprises of the handloom sector in four regions of Ethiopia, the paper shows that clustering, through specialization and division of labor, can lower entry barriers by reducing the initial capital required to start a business. This effect is found to be significantly larger for microenterprises investing in districts with higher levels of capital market inefficiency, indicating the importance of clustering as an organizational response to a constrained credit environment. The findings highlight the importance of cluster-based industrial activities as an alternative method of propagating industrialization when local conditions do not allow easy access to credit. 2010 2024-10-01T13:57:27Z 2024-10-01T13:57:27Z Working Paper https://hdl.handle.net/10568/153748 en Open Access application/pdf International Food Policy Research Institute Ali, Merima; Peerlings, Jack; Zhang, Xiaobo. 2010. Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia. IFPRI Discussion Paper 1045. https://hdl.handle.net/10568/153748 |
| spellingShingle | industrialization finance microenterprises Ali, Merima Peerlings, Jack Zhang, Xiaobo Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title | Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title_full | Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title_fullStr | Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title_full_unstemmed | Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title_short | Clustering as an organizational response to capital market inefficiency: Evidence from handloom enterprises in Ethiopia |
| title_sort | clustering as an organizational response to capital market inefficiency evidence from handloom enterprises in ethiopia |
| topic | industrialization finance microenterprises |
| url | https://hdl.handle.net/10568/153748 |
| work_keys_str_mv | AT alimerima clusteringasanorganizationalresponsetocapitalmarketinefficiencyevidencefromhandloomenterprisesinethiopia AT peerlingsjack clusteringasanorganizationalresponsetocapitalmarketinefficiencyevidencefromhandloomenterprisesinethiopia AT zhangxiaobo clusteringasanorganizationalresponsetocapitalmarketinefficiencyevidencefromhandloomenterprisesinethiopia |