Industrialization and tariff Protection in Ethiopia
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Date
1984-05
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A.A.U
Abstract
Industrializa tion in Ethiopia is a recent Phenomenon. The
Eontribution of the manufacturing sector in terms of GDP, Employment,
export earnings , Etc. Is very Small. The manufacturing industries
emphasise the production of non- durable consumer goods.
in Ethiopia , Tariff Protect ion is an important instrument
employed by the government to encourage the domestic industries.
the objective of this ,study is, Among other things , ( 1 ) to assess
the effectiveness of tariff protection, (2) to identify which
industries or group of industries the' policy favors and the Possible
consequences of the policy and (3) to estimate the domestic resource
cot of saving a unit of Foreign exchange.
the findings show that the pattern of protection in Ethiopia
Favors consumer goods production. These are the oldest group of
industries in the history of manufacturing in the country. However,
they are still protected highly. This is a sign of inefficiency.
the findings also reveal that tariff rate setting in Ethiopia is a
case-by - case approach. There is no branches.. The domestic resource cost
estimation shows that the domestic factor endowments do not suit to
the production of some products.
Protection by itself does not necessarily lead to inefficiency
what is important is the dosage and type of industries to be protected.
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Keywords
Ethiopia, Industrialization and Tariff Protection