Firms’ Locational Choice and Infrastructure Development in Rwanda

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.

Bibliographic Details

Main Authors:	Humphrey, Richard Martin, Iimi, Atsushi, Melibaeva, Sevara
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-06
Subjects:	SANITATION, BUSINESS ACTIVITIES, PRODUCTION, FOSSIL FUELS, LAGS, GLOBAL MARKETS, GLOBAL COMPETITIVENESS, TRANSPORT INFRASTRUCTURE, CONSUMER GOODS, INFORMATION, EXPORTS, ELASTICITY, INFRASTRUCTURE DEVELOPMENT, POLITICAL ECONOMY, MANUFACTURERS, AGGLOMERATION BENEFITS, COMPANIES, INDUSTRIAL DEVELOPMENT, PUBLIC INFRASTRUCTURE, VARIABLES, FIRM SIZE, TAX, INDUSTRIAL DEVELOPMENTS, OPEN ACCESS, ECONOMIC ACTIVITY, DEVELOPMENT, COMMUNICATIONS, CHOICE, DATA, INTERNATIONAL COMPETITIVENESS, INFRASTRUCTURE ACCESS, ROAD, SOCIAL SERVICE, COSTS, ROAD NETWORK, TRANSPORT, GROWTH PATH, ECONOMETRICS, PRODUCTIVITY, EXTERNALITIES, INDUSTRIALIZATION, INCREASING RETURNS, CRITERIA, MARKETS, FIRM, PRIVATE INVESTMENT, CONNECTIVITY, WEB, SERVICE PROVISION, ENTERPRISES, RAIL STATIONS, SOCIAL DEVELOPMENT, PHYSICAL DISTANCE, FUELS, INFRASTRUCTURE, MANUFACTURING, PHONE, TRANSACTION, INVESTORS, RELIABILITY, FIRMS, WAGES, POLICIES, ECONOMETRIC ANALYSIS, RESULTS, NESTED LOGIT MODEL, VALUE, MOBILE PHONE, ROAD USE, COMMUNICATIONS TECHNOLOGIES, COMPETITIVENESS, FOREIGN DIRECT INVESTMENT, ELECTRICITY, ELASTICITIES, ACCESSIBILITY, AGRICULTURE, INFRASTRUCTURE DEVELOPMENTS, MARKET, GOOD TRANSPORT, DIVERSIFICATION, ROADS, PORT FACILITIES, RESULT, ECONOMIC DEVELOPMENT, TRADE, ICT, GOODS, INTERNATIONAL MARKET, BUSINESSES, BUSINESS, INVESTMENT, NETWORK, AGGLOMERATION ECONOMIES, POSITIVE EXTERNALITIES, BUSINESS ENVIRONMENT, RAIL, MARKET DEMAND, POLICY SUPPORT, PRIVATE INVESTORS, ECONOMIC ACTIVITIES, FOREIGN COMPANIES, INVESTMENTS, PORT ACCESS, CUSTOMERS, ECONOMIC GEOGRAPHY, TRANSPORT COSTS, TECHNOLOGIES, SEE, COMMODITY, INTERNATIONAL MARKETS, LARGE ENTERPRISES, SIZE OF FIRM, PRICES, USES, DEVELOPMENT POLICY,
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24570548/firms’-locational-choice-infrastructure-development-rwanda https://hdl.handle.net/10986/22153
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