Framing the Debate on Industrial Development Strategy and Foreign Direct Investment in Creating Positive Externalities:
No Thumbnail Available
Date
2020-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This study is on Industrial Policy, Foreign Direct Investment, and positive externalities. The study focuses on the nexus among the policy, the institutional arrangement of lead agencies and support institutions with firms in industrial parks in Addis Ababa. The firms are selected from the Textile and Garment, the leather and related industries as they are promoted as priority sectors in the IDS. The IDS has been promoted in the two GTP periods accompanied by debates on performance and results not only in monetary terms but also in producing positive externalities that could enable competitiveness at the global stage. Three industrial parks were selected to have the perspectives of the managers who work for the enterprises in those industrial complexes as a proxy to measure the externalities that are being produced in the process. Managers by and large view the policy objectives are not seriously followed, performance are not rewarded as such, as they are not punished. Knowledge, skill, managerial know-how, process know-how’s, institutional capacity building, and championing export are acknowledged promoted policy wise according to the managers understanding. The overall result of the study shows, goals other than capital formation and employment creation, are not monitored and evaluated consistently in all institutional arrangements that have or should have significant contribution. Therefore, the policy learning from implementation feedback is weak. No coherent system and metrics to measure the externalities generated from FDI driven firms is not in place. Which in turn have limited to what extent positive externalities are generated, what factors affected the process and why left unchecked. As a result the policy implementation is found to be largely flawed.
Description
A Thesis Submitted to Addis Ababa University College of Business and Economics, Graduate Studies in Partial Fulfillment of the Requirements for Degree of Master’s in Public Management and Policy
Keywords
FDI, Externalities, Manager, Institution, Linkage.