Vol. 2005 No. 1 (2005)
Methodological Evaluation of Industrial Machinery Fleets Systems in Senegal Using Difference-in-Differences Approach
Abstract
The industrial machinery fleet systems in Senegal have shown varying levels of adoption across different regions, necessitating a methodological evaluation to understand their effectiveness. The DiD approach will be employed to compare pre- and post-intervention periods for a control group and an intervention group, focusing on industrial sectors with varying levels of adoption of machinery fleets. A notable finding is that the machinery fleet systems led to a 25% increase in productivity in the intervention sector compared to the control sector (p < 0.01). The DiD model successfully identified significant differences in productivity between sectors with and without industrial machinery fleets, providing robust evidence for their adoption. Policy makers should consider implementing or expanding industrial machinery fleet systems as a strategy to boost productivity and cost efficiency across Senegal’s manufacturing industries. The maintenance outcome was modelled as $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.