Externe Publikationen

When industrial policy fails to produce structural transformation: the case of Ethiopia

Vrolijk, Kasper
Externe Publikationen (2021)

published on blogs.lse.ac.uk, 16.04.2021

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Despite the increasing foreign investment in many African economies, their participation in trade, and the economic growth that follows from it, structural transformation has remained limited. This blog takes a look at Ethiopia’s industrial policy and argues that the government has failed to sufficiently emphasize innovation in—and technology transfer to—domestic firms, leading to minimal “upgrading” of low to high value-added activities.