Linkages in the Ethiopian Manufacturing industry

Course ID
Ethiopian Economics Association (EEA)
Kibre Moges

The extent and nature of the interplay within and among sectors, citrus paribus, determines the base, pace and sustainability of economic development. This interplay is in turn determined largely by the composition and volume of manufacturing activities. Using an input-output framework, this study attempts to assess the magnitude of linkages among manufacturing industries and manufacturing sector with other sectors in the context of the Ethiopian economy. The study has demonstrated the existence of a very weak internal linkage. Agro-processing industries have had relatively high backward linkages; where as chemical and metallurgy industries are largely import dependent. A mixed result has been observed with regards to forward linkages. While some industries have relatively large multipliers, the majority have little or no forward linkages both from agro-processing and chemical and metallurgical industrial groups. Industries with high per unit output multipliers do not actually play a tangible role in the economy because of their tiny size. Although natural it could be to observe very weak internal linkages in the early stages of industrialization, sustaining this pattern may not ensure rapid and sustainable pace of industrialization. Thus, a deliberate change of direction should be sought towards internalizing the linkage effects of import intensive industries, minimizing external dependency, maximizing and deepening the overall linkage effects through the expansion of industries having high unit output multipliers and building domestic technological capabilities.

Corporate Author: Getnet Alemu & []. & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: Ethiopian Economic Association (EEA)
Primary Descriptors: Manufacturing Industries ; Manufacturing sector

Secondary Descriptor: Sustainable Economic Development

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Broad Subject heading: Industry – Manufacturing-Ethiopia
Call Number: 330.963 PRO 2006
Serial Key Title: Proceedings of the Third International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2013-05-27 23:06:00
Forum or Discussion date: 2013-02-27 15:02:03
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Kibre Moges and Worku Gebeyehu

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