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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/990

Title: MANUFACTURING SECTOR AND TRADE LIBERALIZATION IN ETHIOPIA
Authors: ALEMAYEHU, KUMA
Advisors: Dr. Tasew W/hana
Copyright: 2002
Date Added: 8-May-2008
Publisher: Addis Ababa University
Abstract: Analysis of the operation of the manufacturing sector in connection with trade liberalization is important. It helps to see what impacts (positive or adverse) has happened following the change in trade regime and envisages what action to take in the future. Review of trade related policy measures and assessment of the extent of liberalization are made using some indicators. Both econometric and descriptive techniques are also applied to investigate the operation of the manufacturing sector and the association between measures of productivity and some indicators of liberalization. The results indicate that manufacturing output, value added, capital expenditure and sales have increased after the reform when compared with the pre reform situation. Share of manufacturing export, however, depicted a declining trend after 1995/96. There is also an increase in the number of firms though manufacturing employment has not shown significant changes between the two periods. The increase in output that observed after the reform is mainly attributed to the performances during the initial periods of the trade reform than being the whole period phenomena. Only a minor increase in productivity has been observed in the post reform period. Increased competition across domestic firms and fall in parallel market premium are found to affect the productivity of the manufacturing sector positively, while the effect of change in relative prices (measured by ratio of effective exchange rates) is not significant. Size of the different sector also has an implication on efficiency. The observed results, in general, imply that strengthening domestic competition by encouraging entry and liberalizing the foreign exchange market with accompanied trade policy adjustment has impacts on the performance of the manufacturing sector. Emphasizing the role of prices alone is not, however, sufficient to bring the intended changes in productivity.
Description: A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES ADDIS ABABA UNIVERSITY IN PARTIAL FULFILMENT OF THE REQUIRMENT FOR THE DEGREE OF MASTERS OF SCIENCE IN ECONOMICS
URI: http://hdl.handle.net/123456789/990
Appears in:Thesis - Economics

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