This paper analyzes the risk of exit for privately-owned manufacturing establishments in a small African economy. It shows that changes in the structure of ownership following an economic reform have important implications on stablishment survival. The risk of exit is lower for establishments that belong to multi-unit firms as compared to single-unit establishments suggesting the presence of information and risk sharing mechanisms within a group. Although female-owned businesses tend to be smaller in size, they have better chances of survival than male-owned establishments. The probability of exit also declines significantly in establishment size and productivity.

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Keywords Africa, Ethiopian manufacturing, firm survival, ownership structure, productivity
JEL Firm Behavior (jel D21), Production, Pricing, and Market Structure; Size Distribution of Firms (jel L11)
Persistent URL,
Series ISS Staff Group 0
Journal World Development
Shiferaw, A. (2009). Survival of Private Sector Manufacturing Establishments in Africa: The Role of Productivity and Ownership. World Development, 37(3), 572–584. doi:10.1016/j.worlddev.2008.08.004