Firms’ Locational Choice and Infrastructure Development in Rwanda

Iimi, Atsushi; Humphrey, Richard Martin; Melibaeva, Sevara

Firms’ Locational Choice and Infrastructure Development in Rwanda

2015

Iimi, Atsushi | Humphrey, Richard Martin | Melibaeva, Sevara

Agglomeration economies are among the most important factors to increase firm productivity. However, there is little evidence supportive of this in Africa. By applying the conditional and nested logit models, this paper examines the relationship between firm locations and infrastructure accessibility in Rwanda. It is found that agglomeration economies matter to even one of the smallest countries in Africa. It is also found that infrastructure availability has an important role in affecting the firm location decision. Electricity access and transport connectivity to the domestic and international markets are found to be important to attract new investment. In addition, the quality of local labor supplied, measured by educational attainment, is found as an important determinant of firm location, while the effect of labor costs remains inconclusive.

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Mots clés AGROVOC

agriculture businesses companies costs data development diversification econometrics economic activities economic development economic geography elasticities elasticity electricity enterprises exports firms fossil fuels fuels industrial development industrialization information infrastructure investment large enterprises manufacturing market demand markets open access policies prices private investment production productivity results roads sanitation see social development trade transport transport infrastructure uses wages

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Editeur

World Bank, Washington, DC

D'autres materias

Goods; Business environment; Network; Value; Commodity; Physical distance; Size of firm; Phone; Ict; Political economy; Road; Consumer goods; Infrastructure access; Road use; Customers; Web; Firm; Connectivity; International competitiveness; Growth path; Economic activity; Business; Social service; Technologies; Econometric analysis; Rail stations; Transport costs; Rail; Communications; Development policy; Competitiveness; Investments; Public infrastructure; Industrial developments; Road network; Agglomeration benefits; Business activities; Firm size; International markets; Increasing returns; Criteria; Port access; Investors; Result; Private investors; Agglomeration economies; Accessibility; Nested logit model; Infrastructure development; International market; Service provision; Good transport; Market; Global markets; Lags; Infrastructure developments; Foreign companies; Choice; Manufacturers; Transaction; Global competitiveness; Policy support; Externalities; Foreign direct investment; Port facilities; Variables; Mobile phone; Tax; Positive externalities; Communications technologies; Reliability

Langue

anglais

Type

Working Paper; Text; Working Paper

Sur AGRIS depuis: 2016-03-15

Format: AGRIS AP

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Firms’ Locational Choice and Infrastructure Development in Rwanda

2015

Mots clés AGROVOC

Informations bibliographiques