Firm Performance and Agglomeration Effects: Evidence from Tunisian Firm-level Data - Economic Research Forum (ERF)

Firm Performance and Agglomeration Effects: Evidence from Tunisian Firm-level Data

Mohamed Amara

March, 2019


34 pages

R1. General Regional Economics
L2. Firm Objectives, Organization, and Behavior
D2. Production and Organizations

Using Tunisian manufacturing data between 1998 and 2004 and by referring to multilevel approach, this paper investigates the impact of agglomeration and individual characteristics on firm’s performance. The empirical results show the importance of considering both regional and firm characteristics when examining firm performance. They also support the validity of self selection and learning-by-exporting hypotheses. Urbanization and localization effects are significant and positive for firm’s export behavior, but only localization economies have a positive effect of firm productivity. However, the results of the quantile approach show that selection, rather than agglomeration economies in larger cities, better explain spatial productivity differences.


Mohamed Amara

Associate Professor, Higher School of Economic and Commercial Sciences of Tunis, University of Tunis



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