Abstract and Keywords
Over the last two decades the Ethiopian manufacturing sector has experienced rapid expansion in terms of the number of firms, sales, and employment. This chapter examines the performance of the manufacturing sector using aggregate data and firm-level panel data compiled by the Central Statistical Agency (CSA) of Ethiopia. The focus is on three dimensions of performance: productivity growth, the extent of export orientation, and the competitiveness of domestic firms in the global context. Manufacturing remains a relatively small sector in terms of contribution to GDP and employment, and it has yet to become export oriented even by African standards. In examining productivity growth, the analysis addresses within-firm productivity growth and its heterogeneity across firms, as well as the role of resource reallocation from less efficient firms to more efficient ones.
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