Infrastructure and cluster development: A case study of handloom weavers in Ethiopia

Rural nonfarm development plays a key role in generating employment in many developing countries. Clustering is an important form of industrial organization in the rural nonfarm sector. Based on a primary survey of both urban and rural handloom weaver clusters in Ethiopia, one of the country's most...

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Autores principales: Ayele, Gezahegn, Moorman, Lisa, Wamisho, Kassu, Zhang, Xiaobo
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2010
Materias:
Acceso en línea:https://hdl.handle.net/10568/154557
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author Ayele, Gezahegn
Moorman, Lisa
Wamisho, Kassu
Zhang, Xiaobo
author_browse Ayele, Gezahegn
Moorman, Lisa
Wamisho, Kassu
Zhang, Xiaobo
author_facet Ayele, Gezahegn
Moorman, Lisa
Wamisho, Kassu
Zhang, Xiaobo
author_sort Ayele, Gezahegn
collection Repository of Agricultural Research Outputs (CGSpace)
description Rural nonfarm development plays a key role in generating employment in many developing countries. Clustering is an important form of industrial organization in the rural nonfarm sector. Based on a primary survey of both urban and rural handloom weaver clusters in Ethiopia, one of the country's most important rural nonfarm sectors, this paper examines the mechanism and performance of clustering. That cluster-based handloom production survives even in remote rural areas illustrates its vitality in restricted environments. In the absence of financial institutions, clustered producers set up interconnected trade credit linkages to ease working capital constraints. Moreover, geographical clustering enables entrepreneurs with limited capital to enter the business through shared workspaces and fine division of labor. Despite the viability of the clustering model of production operating in harsh environments, an improvement in infrastructure can further enhance firm performance in a cluster. Our survey indicates that producers in electrified towns work longer hours than those in towns without electricity. In addition, the rental cost of shared lit workspaces is minimal, attracting more poor entrepreneurs to participate in handloom production than would otherwise be possible.
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spelling CGSpace1545572025-11-06T07:14:27Z Infrastructure and cluster development: A case study of handloom weavers in Ethiopia Ayele, Gezahegn Moorman, Lisa Wamisho, Kassu Zhang, Xiaobo productivity handicraft weaving Rural nonfarm development plays a key role in generating employment in many developing countries. Clustering is an important form of industrial organization in the rural nonfarm sector. Based on a primary survey of both urban and rural handloom weaver clusters in Ethiopia, one of the country's most important rural nonfarm sectors, this paper examines the mechanism and performance of clustering. That cluster-based handloom production survives even in remote rural areas illustrates its vitality in restricted environments. In the absence of financial institutions, clustered producers set up interconnected trade credit linkages to ease working capital constraints. Moreover, geographical clustering enables entrepreneurs with limited capital to enter the business through shared workspaces and fine division of labor. Despite the viability of the clustering model of production operating in harsh environments, an improvement in infrastructure can further enhance firm performance in a cluster. Our survey indicates that producers in electrified towns work longer hours than those in towns without electricity. In addition, the rental cost of shared lit workspaces is minimal, attracting more poor entrepreneurs to participate in handloom production than would otherwise be possible. 2010 2024-10-01T14:02:15Z 2024-10-01T14:02:15Z Working Paper https://hdl.handle.net/10568/154557 en https://hdl.handle.net/10568/162019 https://doi.org/10.1080/00220388.2011.579112 https://hdl.handle.net/10568/162060 Open Access application/pdf International Food Policy Research Institute Ayele, Gezahegn; Moorman, Lisa; Wamisho, Kassu; Zhang, Xiaobo. 2010. Infrastructure and cluster development: A case study of handloom weavers in Ethiopia. IFPRI Discussion Paper 980. https://hdl.handle.net/10568/154557
spellingShingle productivity
handicraft weaving
Ayele, Gezahegn
Moorman, Lisa
Wamisho, Kassu
Zhang, Xiaobo
Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title_full Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title_fullStr Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title_full_unstemmed Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title_short Infrastructure and cluster development: A case study of handloom weavers in Ethiopia
title_sort infrastructure and cluster development a case study of handloom weavers in ethiopia
topic productivity
handicraft weaving
url https://hdl.handle.net/10568/154557
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AT zhangxiaobo infrastructureandclusterdevelopmentacasestudyofhandloomweaversinethiopia