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RESEARCH PRODUCT

Structure and determinants of production in Textile-Clothing-Leather-Skins (TCLS) craft industry in Benin: a study based on investigations of the value creation in TCLS sector

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Lieu et date de la conférence modifiées. Prétoria 31Juillet au 2 Août 2014 (Au lieu de Kigali -Rwanda); International audience; Sustainable economic growth in Benin requires a better understand of the informalsector, which contributes to two-thirds of GDP. Particularly, craft industry and TCLSsubsector is one of informal activity sector to be handled. The objectives of this work wereto identify the structure and factors that determine the production in TCLS craft industry.This study was based on a survey carried out in February 2011 on value creationdata in craft industry of TCLS in Benin. Lack of data induced by informal activities wascircumvented using an imputation method. A Multiple Correspondence Analysis and aclassification approach were used to identify the structure the TLCS subsector. A log-linearmodel taking endogeneity on taxes into account was implemented to determine productionunderlying factors.This study showed that TCLS sector is structured into small, mediumand large firms. The net investment, age of production units, labour and the book-keepingincrease the production. The labour (here many apprentices) is not remunerated whereasit constitutes a large asset for the sector. Conclusions and policy implications: Differentresults suggest initiating training towards companies to explain the importance to keepaccounts. Also, policy-makers have to review grids taxes by trade groups following thestructure described above.