Publication:
The Determinants of Firm Location in Tanzania

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dc.contributor.authorSanchez-Reaza, Javier
dc.date.accessioned2018-11-28T20:01:08Z
dc.date.available2018-11-28T20:01:08Z
dc.date.issued2018-10-01
dc.description.abstractThis paper identifies the factors that affect the location of firms in Tanzania. Using a binomialeconometric strategy to address data gaps in firm location at the ward level, the paper groups factors into firm characteristics, market features, and two types of agglomeration economies that capture economies of scale external to the firm. The benefits of agglomeration may stem from specialization within and among firms (referred to in the literature as localization economies) or from diversification across firms (referred to as urbanization economies). The distinction between these two lies at the heart of the discussion on firm location. Regression results indicate that, of the various factors tested, the most important determinant driving firm location is the jobs diversification aspect of urban economies. Other contributing factors are localization economies (jobs specialization), competitive markets, and market access. Based on these findings, policymakers seeking to foster agglomeration could orient policies toward promoting firm entry within cities, complementary investments in urban infrastructure and the urban pool of labor, regulations that support competition, and improvements in market access for large cities. But localization economies are also significant in Tanzania, and could be encouraged through investment in smaller population centers and increasing competition and market access beyond the primary urban centers of Dar-es-Salaam and Arusha.en
dc.identifierhttp://documents.worldbank.org/curated/en/911911540405386304/The-Determinants-of-Firm-Location-in-Tanzania
dc.identifier.doi10.1596/30914
dc.identifier.urihttps://hdl.handle.net/10986/30914
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesJobs Working Paper;No. 21
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFIRM LOCATION
dc.subjectECONOMIC GEOGRAPHY
dc.subjectECONOMETRIC MODEL
dc.subjectSPATIAL ECONOMICS
dc.subjectURBANIZATION
dc.subjectLOCALIZATION ECONOMIES
dc.titleThe Determinants of Firm Location in Tanzaniaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Determinants of Firm Location in Tanzania
okr.date.disclosure2018-10-24
okr.doctypePublications & Research
okr.doctypePublications & Research::Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/911911540405386304/The-Determinants-of-Firm-Location-in-Tanzania
okr.guid911911540405386304
okr.identifier.doi10.1596/30914
okr.identifier.doihttps://doi.org/10.1596/30914
okr.identifier.externaldocumentum090224b086915a44_2_0
okr.identifier.internaldocumentum30544283
okr.identifier.report131290
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/911911540405386304/pdf/131290-WPN-Thedeterminantsoffirmlocation-PUBLIC.pdfen
okr.region.administrativeAfrica
okr.region.countryTanzania
okr.themeUrban development
okr.topicMacroeconomics and Economic Growth::Spatial and Local Economic Development
okr.topicPrivate Sector Development::Global Value Chains and Business Clustering
okr.topicPrivate Sector Development::Private Sector Economics
okr.topicSocial Protections and Labor::Labor Markets
okr.topicInternational Economics and Trade::Economic Geography
okr.topicUrban Development::Urban Economics
okr.unitJOBS- CCSA - IBRD (GPSJB)
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