Industrial Clusters and Micro and Small Enterprises in Africa: From Survival to Growth

Industrial Clusters and Micro and Small Enterprises in Africa: From Survival to Growth

by World Bank

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Product Details

ISBN-13: 9780821386279
Publisher: Bernan Distribution
Publication date: 12/30/2010
Series: Directions in Development
Pages: 208
Product dimensions: 6.00(w) x 8.90(h) x 0.50(d)

Table of Contents

Foreword xiii

Acknowledgments xv

Abbreviations xix

Overview 1

Performance Gaps between Domestically Owned and Foreign-Owned Firms in Africa 2

Industrial Clusters in Africa 5

Growth Constraints for Survival Clusters 6

Building Managerial Human Capital 8

Implications for Policies 9

Chapter 1 Introduction 11

Dualistic Structure of the Private Sector in Africa 13

Performance Gap between Domestically Owned and Foreign-Owned Enterprises in Africa 16

Notes 23

References 24

Chapter 2 Unbundling Foreign-Domestic Performance Gaps in Africa's Private Sector 25

Productivity Gap 26

Market Access: Participation in Nonlocal Markets 34

Notes 38

References 39

Chapter 3 Industrial Clusters as Natural Agglomerations of Micro and Small Enterprises: A Conceptual Framework 41

Concept of Clusters 44

Economic Geography of Industrial Clusters 47

Beyond Transportation Costs: Market and Government Failures, Transaction Costs, and Industrial Clusters 49

External Linkages and Cluster Competitiveness 51

Internal Dynamics and External Linkages in Industrial Clusters around the World 52

Role of Clusters in Micro and Small Enterprise Development 59

Notes 61

References 62

Chapter 4 Industrial Clusters and Business Performance of Micro and Small Enterprises in Africa 65

Clustering and Business Performance: Natural Industrial Clusters in Light Manufacturing Industries 68

Nontraditional, Nonmanufacturing Clusters in Africa 82

Notes 88

References 89

Chapter 5 Location, Market Access, and Business Performance of Cluster-Based Enterprises 91

Location Choice of Micro and Small Light Manufacturers 92

Micro-Level Choice of Location and Business Performance: Findings from the Arusha Furniture Cluster Case Study 94

Notes 100

References 100

Chapter 6 Agglomeration and Growth Challenges for Enterprises in Survival Clusters in Africa 101

Growth Bottlenecks in Survival Clusters 103

Successful Transformation from Informal Survival-Cluster Enterprises to Formal Enterprises 108

Implications of Cluster Growth for Employment 109

Note 110

References 110

Chapter 7 Building Managerial Human Capital in Africa's Survival Industrial Clusters 113

Cluster-Based Pilot Managerial Skill Training Programs in Kumasi and Nairobi 114

Assessing the Impacts of Training Programs 124

Implications of the Results 132

Notes 135

References 136

Chapter 8 Policy Implications: Turning Survival into Growth 139

Building Managerial Skills 140

Sound Spatial and Urbanization Policy 141

Supporting Market Expansion through Regional Integration 143

Government Cluster Development Policies 145

Note 155

References 156

Appendix 1 Instrumental Variable Model Estimation on Domestic Ownership Effect on Productivity 157

References 158

Appendix 2 Basic Characteristics of Sampled Micro and Small Light Manufacturing Enterprises Inside and Outside the Clusters 159

Appendix 3 Data Envelopment Analysis 163

Reference 164

Appendix 4 Format of Managerial Skills Training Programs 165

Notes 168

References 168

Appendix 5 Average Treatment of Treated and DID Matching Estimator 169

References 171

Appendix 6 List of Background Papers and Boxes Contributed for the Study 173

Index 175

Boxes

2.1 World Bank Enterprise Surveys 26

2.2 Blinder-Oaxaca Decomposition 32

3.1 Typology of Industrial Clusters 45

3.2 Clusters and the Environment 57

4.1 Labor Productivity of Cluster-Based Enterprises and National Averages 69

4.2 Clusters and Gender 80

4.3 IT and IT-Enabled Services Clusters in Africa and around the World 86

4.4 Tourism Cluster in Rwanda 87

5.1 Subclusters within the Arusha Furniture Cluster in Tanzania 96

6.1 The Olezoa Furniture Cluster in Yaoundé 104

7.1 History of Suame Magazine 115

7.2 History of Kariobangi Light Industries 116

7.3 Challenges among Micro and Small Enterprises in Suame Magazine 122

8.1 Interface between Government Policies to Support Micro, Small, and Medium Enterprises and Strategies to Develop Clusters in Cameroon 145

8.2 Interface between Government Policies to Support Micro, Small, and Medium Enterprises and Strategies to Develop Clusters in Kenya 146

8.3 Interface between Government Policies to Support Micro, Small, and Medium Enterprises and Strategies to Develop Clusters in Ghana 148

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