Contribution to Book
Economic Policy and Structural Transformation in Ethiopia
The Oxford Handbook of the Ethiopian Economy
(2019)
Abstract
Ethiopia has advanced from the strong economic recovery of the 1990s to rapid growth since the early 2000s. The underlying economic structure exhibits only modest changes as industrialization has yet to take root. This chapter examines the link between policy choices, economic growth, and transformation under the Derg and EPRDF regimes. While policy reforms and public expenditure on infrastructure and basic services since 1991 have triggered rapid growth by reducing major inefficiencies, structural transformation requires action to boost productivity, alter the structure of demand, and build productive capacity. Productivity remains below that of other developing countries both in the production of food and agricultural raw materials. Manufacturing firms exhibit lacklustre levels of investment while import penetration rates continue to rise. Inequality of asset ownership in urban areas, and the weak response of asset positions to income growth in rural areas suggest challenges in raising household demand for non-food consumption items.
Disciplines
Publication Date
February 11, 2019
Editor
Fantu Cheru, Christopher Cramer & Arkebe Oqubay
Publisher
Oxford University Press
ISBN
9780198814986
DOI
https://doi.org/10.1093/oxfordhb/9780198814986.013.8
Citation Information
Mekonnen Manyazewal and Admasu Shiferaw. "Economic Policy and Structural Transformation in Ethiopia" New YorkThe Oxford Handbook of the Ethiopian Economy (2019) p. 137 - 158 Available at: http://works.bepress.com/admasu-shiferaw/26/