Urban Economic Structure of the Amhara Region: Assessment Using Economic Base and Shift Share Analysis
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Date
2022-06-01
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Addis Ababa University
Abstract
This study attempts to economic structure of the Amhara region: assessment using economic
base and shift share analysis. Based on the specific objectives, the researcher assessed basic and
non-basic sectors of the region’s economy, the major competitive edge economy as well as the
shift share analysis and the change of the region economy over the two years. The research data
were secondary data and the study used urban industrial employment data for two points in time
for the years 2014 and 2018 as conducted by CSA. The research used two time data for the year
of 2014 and 2018, to examine basic and non-basic industry sectors of study region for the reason
that the most appropriate. As shift share technique used to identify regional mix share, national
growth share and industry mix share of the study region. More over the research used
quantitative research approach and descriptive research. Result indicate that all mining (0.7 &
0.8), water supply (0.9& 0.8), wholesaler trade (0.7& 0.5) most transportation activities,
accommodation (0.9& 0.6) and food services, rental leasing activities (0.8 & 0.1), real estate
(0.2&0.21, manufacturing activities are no longer the backbone of the economy of Amhara
region economy, for the reason that location quotient results of these sector are less than one.
These sectors showed decline of employment over the 5-year period and also based on the
finding Amhara region is weak within these industry sectors. While Agriculture, forestry &
fishing, manufacturing of textiles (1.3& 1.1) and manufacturing of furniture (1.2& 1.1) gas(1&1)
construction of building(1&1),public administration(1&1),education(1&1) sports activities
(1.12& 1.1) are the most strong (robust) sectors contributing employment growth for Amhara
region in 2014 to 2018 year urban economic sectors. These sectors are the positive economic
growth of Amhara region. The employment multiplier (EM) results indicate the total export
employment for Amhara region was 7.131, where the total local employment levels is-1586988.
Based on industrial growth share calculation, there are a total of six industries that are losing
their regional growth share in the local economy as compared to the national: those are
wholesale trade (-33291) administrative and support service activities (-22882), professional (-
585144), extraterritorial organizations -911232.4, financial and insurance and other service
activities. Based on these sectors Amhara region has lost largest amount of jobs. Moreover
based on these industry sectors Amhara region falls below the benchmark region. The other
industrial sectors such as agriculture, fishing, manufacturing, construction, and education are
gaining more amount of jobs employment. The regional and national governments should be
providing additional job employment within those sectors. And the planner and the policy
makers should try to develop additional investments, new planning and strategies’ in each
industrial sector.
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Keywords
Economic Base analysis, Shift Share Analysis, Iocation Quotient Export Base theory