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The Role of Private Sector and its Contribution to Industrialization in Developing Countries: A case study on Ethiopia

Eruydas, Tugce LU (2018) EKHS21 20181
Department of Economic History
Abstract
In recent years, Ethiopia’s double-digit growth rates are regarded as an economic miracle. As the government assigned a key role for the private sector to promote industrialization, this paper investigates the current state of the private sector in the manufacturing industry and the extent it contributes to the growth and development in Ethiopia. An exploratory case study approach was implemented to assess the role of the Private Sector Development (PSD) strategy in line with the theoretical pillars of New Structural Economics (NSE). The analysis of the policy reports along with the descriptive data sourced from the national surveys indicates that there exists a large gap between objectives and actual results especially in employment... (More)
In recent years, Ethiopia’s double-digit growth rates are regarded as an economic miracle. As the government assigned a key role for the private sector to promote industrialization, this paper investigates the current state of the private sector in the manufacturing industry and the extent it contributes to the growth and development in Ethiopia. An exploratory case study approach was implemented to assess the role of the Private Sector Development (PSD) strategy in line with the theoretical pillars of New Structural Economics (NSE). The analysis of the policy reports along with the descriptive data sourced from the national surveys indicates that there exists a large gap between objectives and actual results especially in employment creation, productivity gains, technology and skill transfers. Furthermore, efforts to create an enabling environment for the private sector remains futile, given the country’s low-ranking in the latest business surveys. It implies that the lack of alignment between the state strategy and domestic and foreign investors’ actions, which undermines the potential of the PSD to contribute to the process of industrialization. For PSD to be a successful strategy, this paper highlights the importance of the promotion of local linkages, improving the technology absorption capacity, and the expansion of human capital along with the creation of a platform for enhanced dialogue between the stakeholders in facilitating the economic transition in Ethiopia. (Less)
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author
Eruydas, Tugce LU
supervisor
organization
course
EKHS21 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
Ethiopia, structural transformation, private sector development
language
English
id
8968366
date added to LUP
2020-03-17 13:07:50
date last changed
2020-03-17 13:07:50
@misc{8968366,
  abstract     = {In recent years, Ethiopia’s double-digit growth rates are regarded as an economic miracle. As the government assigned a key role for the private sector to promote industrialization, this paper investigates the current state of the private sector in the manufacturing industry and the extent it contributes to the growth and development in Ethiopia. An exploratory case study approach was implemented to assess the role of the Private Sector Development (PSD) strategy in line with the theoretical pillars of New Structural Economics (NSE). The analysis of the policy reports along with the descriptive data sourced from the national surveys indicates that there exists a large gap between objectives and actual results especially in employment creation, productivity gains, technology and skill transfers. Furthermore, efforts to create an enabling environment for the private sector remains futile, given the country’s low-ranking in the latest business surveys. It implies that the lack of alignment between the state strategy and domestic and foreign investors’ actions, which undermines the potential of the PSD to contribute to the process of industrialization. For PSD to be a successful strategy, this paper highlights the importance of the promotion of local linkages, improving the technology absorption capacity, and the expansion of human capital along with the creation of a platform for enhanced dialogue between the stakeholders in facilitating the economic transition in Ethiopia.},
  author       = {Eruydas, Tugce},
  keyword      = {Ethiopia,structural transformation,private sector development},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Role of Private Sector and its Contribution to Industrialization in Developing Countries: A case study on Ethiopia},
  year         = {2018},
}