Network Proximity and Business Practices in African Manufacturing

Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client ar...

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Bibliographic Details
Main Authors:	Fafchamps, Marcel, Söderbom, Måns
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2015
Subjects:	covariance matrix economic development equipment financial support Industrial Revolution innovation international trade manufacturing network data new technology productivity R&D results technological innovation
Online Access:	http://hdl.handle.net/10986/22559

id	okr-10986-22559
recordtype	oai_dc
spelling	okr-10986-225592021-04-23T14:04:09Z Network Proximity and Business Practices in African Manufacturing Fafchamps, Marcel Söderbom, Måns covariance matrix economic development equipment financial support Industrial Revolution innovation international trade manufacturing network data new technology productivity R&D results technological innovation Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client are used for the analysis. Only limited support is found for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. Indeed, for certain practices, adoption decisions appear to be local strategic substitutes: if one firm in a given location uses a certain practice, nearby firms are less likely to do so. These results suggest that the diffusion of technology and new business practices may play a more limited role in spurring growth in Africa's manufacturing sector than is often assumed in the present policy discussion. 2015-08-28T18:44:26Z 2015-08-28T18:44:26Z 2014-01-23 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/22559 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Ethiopia Sudan
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	covariance matrix economic development equipment financial support Industrial Revolution innovation international trade manufacturing network data new technology productivity R&D results technological innovation
spellingShingle	covariance matrix economic development equipment financial support Industrial Revolution innovation international trade manufacturing network data new technology productivity R&D results technological innovation Fafchamps, Marcel Söderbom, Måns Network Proximity and Business Practices in African Manufacturing
geographic_facet	Africa Ethiopia Sudan
description	Patterns of correlation in innovation and contractual practices among manufacturing firms in Ethiopia and Sudan are documented. Network data that indicate whether any two firms in the utilized sample do business with each other, buy inputs from a common supplier, or sell output to a common client are used for the analysis. Only limited support is found for the commonly held idea that firms that are more proximate in a network sense are more likely to adopt similar practices. Indeed, for certain practices, adoption decisions appear to be local strategic substitutes: if one firm in a given location uses a certain practice, nearby firms are less likely to do so. These results suggest that the diffusion of technology and new business practices may play a more limited role in spurring growth in Africa's manufacturing sector than is often assumed in the present policy discussion.
format	Journal Article
author	Fafchamps, Marcel Söderbom, Måns
author_facet	Fafchamps, Marcel Söderbom, Måns
author_sort	Fafchamps, Marcel
title	Network Proximity and Business Practices in African Manufacturing
title_short	Network Proximity and Business Practices in African Manufacturing
title_full	Network Proximity and Business Practices in African Manufacturing
title_fullStr	Network Proximity and Business Practices in African Manufacturing
title_full_unstemmed	Network Proximity and Business Practices in African Manufacturing
title_sort	network proximity and business practices in african manufacturing
publisher	Oxford University Press on behalf of the World Bank
publishDate	2015
url	http://hdl.handle.net/10986/22559
_version_	1764451415594369024

Network Proximity and Business Practices in African Manufacturing

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