Firms’ Locational Choice and Infrastructure Development in Rwanda

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

World Bank, Washington, DC

关键词: SANITATION;    BUSINESS ACTIVITIES;    PRODUCTION;    FOSSIL FUELS;    LAGS;   

DOI  :  10.1596/1813-9450-7279
RP-ID  :  WPS7279

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Agglomeration economies are among themost important factors to increase firm productivity.However, there is little evidence supportive of this inAfrica. By applying the conditional and nested logit models,this paper examines the relationship between firm locationsand infrastructure accessibility in Rwanda. It is found thatagglomeration economies matter to even one of the smallestcountries in Africa. It is also found that infrastructureavailability has an important role in affecting the firmlocation decision. Electricity access and transportconnectivity to the domestic and international markets arefound to be important to attract new investment. Inaddition, the quality of local labor supplied, measured byeducational attainment, is found as an important determinantof firm location, while the effect of labor costs remains inconclusive.