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Industrialization on a Knife's Edge : Productivity, Labor Costs and the Rise of Manufacturing in Ethiopi / Stefano Caria.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Caria, Stefano.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Export Competitiveness.
- General Manufacturing.
- Industrialization.
- Industry.
- International Economics and Trade.
- Labor Market.
- Labor Markets.
- Manufacturing.
- Private Sector Development.
- Private Sector Economics.
- Productivity.
- Skills Development and Labor Force Training.
- Wages.
- Wages, Compensation and Benefits.
- Local Subjects:
- Export Competitiveness.
- General Manufacturing.
- Industrialization.
- Industry.
- International Economics and Trade.
- Labor Market.
- Labor Markets.
- Manufacturing.
- Private Sector Development.
- Private Sector Economics.
- Productivity.
- Skills Development and Labor Force Training.
- Wages.
- Wages, Compensation and Benefits.
- Physical Description:
- 1 online resource (35 pages)
- Other Title:
- Industrialization on a Knife's Edge
- Place of Publication:
- Washington, D.C. : The World Bank, 2019.
- System Details:
- data file
- Summary:
- 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.
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