Ethio-China Economic Relations: Nature of China’s Foreign Direct Investment in Ethiopia
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Date
2016-06
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Addis Ababa University
Abstract
This study aims at exploring the role of China in Ethiopian industrialization since 1998. To attain its objectives, the study employed qualitative research approach. Essentially, primary data were collected through key informant interview, observation and document reviews. The findings of the study show that Chinese engagement in the Ethiopian economy particularly in the industrial sector is based on the conditions for foreign direct investment created by the country. Furthermore, Chinese engagement in Ethiopia’s structural transformation of the overall economy is based on mutual benefits of the two countries. However, the manufacturing industry of the country could not grow as much as it has to be. The finding of the study suggests that there are certain problems that need policy measures for further industrial development through attracting foreign direct investment. Besides, problems like shortage of skilled manpower, inadequate foreign currency and lack of clarity in tax system are also among the findings of the study.
Keywords: Ethiopia, China, Foreign Direct Investment, Employment, Industrialization
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Keywords
Ethiopia, China, Foreign Direct Investment, Employment, Industrialization