There is a strong body of international evidence that firms are more productive when they cluster near one another geographically. This column reports new findings on the substantial productivity benefits of such agglomeration in Egypt. The results have important implications for policy, including the value of establishing specialised industrial zones for promising business clusters with high growth potential.
Karim BadrFinancial Sector Economist, World Bank, Cairo
Karim Badr is a Financial Economist with the Financial Sector Economist, World Bank, Cairo.