Technical Progress in the Ethiopian Manufacturing Sector: Extent and Implication for Industrialization
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Date
1997-06
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A.A.U
Abstract
Cognizant of the importance of technical progress in the process of industrialization, examining
its nature and extent in the Ethiopian manufacturing sector is essential. To this end, different
statistical and econometric models are employed. Four main findings emerged in the effort.
Firstly, the Ethiopian manufacturing sector as a whole registered a negative technical progress.
Secondly, the production technique, in general, was capital-consuming and labour-saving,
contrary to the theory of initial factor endowments. Thirdly, there was real sub-sectoral
differences; those sectors which are light and with long production experience recorded a positive
technical progress while others did not. Finally, the private sector, in general, appeared to be
more effective in resource use than the public ones.
These results have implications for industrialization in Ethiopia. Firms should build the
necessary technological and managerial capabilities to adapt, assimilate and modify to local
conditions. In parallel, the government should create the conducive environment by installing
the appropriate capabilities, incentives and institutions, paying due attention to their
complementarity.
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Implication For Industrialization