Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia

The latest push for industrialization in Ethiopia has attracted much academic and public interest. This paper assesses Ethiopia's competitiveness and attractiveness as an investment destination by comparing domestic productivity and input cost...

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Main Author:	Caria, Stefano
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	INDUSTRIALIZATION PRODUCTIVITY WAGES LABOR MARKET MANUFACTURING
Online Access:	http://documents.worldbank.org/curated/en/178101565704130455/Industrialization-on-a-Knifes-Edge-Productivity-Labor-Costs-and-the-Rise-of-Manufacturing-in-Ethiopia http://hdl.handle.net/10986/32273

id	okr-10986-32273
recordtype	oai_dc
spelling	okr-10986-322732022-08-01T00:26:42Z Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia Caria, Stefano INDUSTRIALIZATION PRODUCTIVITY WAGES LABOR MARKET MANUFACTURING The latest push for industrialization in Ethiopia has attracted much academic and public interest. This paper assesses Ethiopia's competitiveness and attractiveness as an investment destination by comparing domestic productivity and input costs to a sample of manufacturing exporting countries. The paper documents that, in a comparison with Kenya, India or Vietnam, the labor cost advantage of Ethiopian firms is more than offset by low productivity. However, Ethiopia appears competitive when compared to Bangladesh. Capital, firm size, or sectoral composition do not explain the low productivity of the Ethiopian manufacturing sector. Ethiopian firms, however, have worse management, particularly in the area of labor management. The paper concludes by discussing the potential for labor interventions to increase productivity and create the condition for further industrialization. 2019-08-16T16:31:33Z 2019-08-16T16:31:33Z 2019-08 Working Paper http://documents.worldbank.org/curated/en/178101565704130455/Industrialization-on-a-Knifes-Edge-Productivity-Labor-Costs-and-the-Rise-of-Manufacturing-in-Ethiopia http://hdl.handle.net/10986/32273 English Policy Research Working Paper;No. 8980 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INDUSTRIALIZATION PRODUCTIVITY WAGES LABOR MARKET MANUFACTURING
spellingShingle	INDUSTRIALIZATION PRODUCTIVITY WAGES LABOR MARKET MANUFACTURING Caria, Stefano Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
geographic_facet	Africa Ethiopia
relation	Policy Research Working Paper;No. 8980
description	The latest push for industrialization in Ethiopia has attracted much academic and public interest. This paper assesses Ethiopia's competitiveness and attractiveness as an investment destination by comparing domestic productivity and input costs to a sample of manufacturing exporting countries. The paper documents that, in a comparison with Kenya, India or Vietnam, the labor cost advantage of Ethiopian firms is more than offset by low productivity. However, Ethiopia appears competitive when compared to Bangladesh. Capital, firm size, or sectoral composition do not explain the low productivity of the Ethiopian manufacturing sector. Ethiopian firms, however, have worse management, particularly in the area of labor management. The paper concludes by discussing the potential for labor interventions to increase productivity and create the condition for further industrialization.
format	Working Paper
author	Caria, Stefano
author_facet	Caria, Stefano
author_sort	Caria, Stefano
title	Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
title_short	Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
title_full	Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
title_fullStr	Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
title_full_unstemmed	Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia
title_sort	industrialization on a knife's edge : productivity, labor costs and the rise of manufacturing in ethiopia
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/178101565704130455/Industrialization-on-a-Knifes-Edge-Productivity-Labor-Costs-and-the-Rise-of-Manufacturing-in-Ethiopia http://hdl.handle.net/10986/32273
_version_	1764476199536427008

Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopia

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