6. Summary and contributions to research
6.2. Contributions to research
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net programs to the promotion of Micro and Small Enterprise (MSEs), large urban areas continue to face chronic challenges in relation to unemployment, housing, and social services. Therefore, in addition to institutional reforms and improvements in infrastructure, the government should endorse more aggressive policy interventions that target the most vulnerable residents in these locations to make urbanization more inclusive. These are broad policy suggestions. The choice of specific interventions within these broad categories should be made based on careful evaluation of their effectiveness as well as cost-benefit analysis105.
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classify urban areas by size (OECD/PSI 2020; Roberts 2014a). While these conventional methods tend to be highly subjective, they often require frequent revision and lack comparability across countries or even across regions within the same country (Satterthwaite and Tacoli 2003; Tacoli 1998). In Chapters 2 and 4, a threshold estimation technique developed by Hansen (2000) is applied to SOL to classify sample villages into rural areas, small towns, intermediate towns, and large towns. While the consistency of this approach with the conventional methods is verified, the method holds huge potential to allow a more rigorous cross-country evaluation of the effect of urbanization and urban concentration.
Fourth, Chapter 5 adds to the use of a choice experiment method to elicit the job preference of public workers in developing countries. While the application of choice experiment surveys to elicit preferences is common in the environmental, health, marketing, and transport literature, its application to the evaluation of employees’ preferences for job attributes is nascent (Chomitz et al. 1998; Hanson and Jack 2008; Kolstad 2011; Scott 2001). This study is one of the first, if not the first, to apply a discrete choice experiment (DCE) design to elicit the job preferences of Agricultural Extension Agents (EAs). Moreover, the simulated maximum likelihood method used in the estimation of the preferences for job attributes, and the estimation of the Willingness to Pay (WTP) in the willingness of pay space are novel econometric methods.
Finally, the thesis adds to the scant literature on the microeconomic application of New Economic Geography (NEG) in developing countries. The introductory chapter highlights the basic framework and predictions of the NEG models. It demonstrates how the change in spatial integration cost (i.e. information costs, transport costs, and tariff and non-tariff barriers) leads to a spatial pattern of economic development based on baseline density. It then examines how this basic prediction is altered leading to a bell-shaped pattern of economic development after accounting for congestion and preference heterogeneity (see Chapter 1). The evolution of urban development, the spatial distribution firms, and the geography of household welfare in Ethiopia are examined within this framework.
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