Economic Growth and Development in Ethiopia

This volume collects empirical studies on the determinants of economic growth and development in Ethiopia, focusing on identifying important factors and estimating their effects using up-to-date data and methods. The studies cover transition from rural agriculture to urban industry and the development of services, representing major challenges to the government and development organizations.

Format: Hardback
Length: 276 pages
Publication date: 18 May 2018
Publisher: Springer Verlag, Singapore

This comprehensive volume presents a collection of meticulously selected empirical studies on the key factors influencing economic growth and development in Ethiopia. The central rationale behind its editing is to present a current and comprehensive overview of Ethiopia's state and patterns of growth and development. Ethiopia has garnered significant attention in the past due to various factors such as droughts, conflicts, famines, development transitions, and the impact of global economic crises. A significant contribution of this volume lies in its ability to identify and estimate the effects of select critical determinants of growth and development in Ethiopia, employing up-to-date data, modeling, and methodologies. When taken together, the studies in this volume provide a holistic picture of Ethiopia's growth and development, encompassing their measurements, causal relationships, and evaluation of effective policies and practices for achieving progress. The issues addressed in these studies represent major challenges for the government and development organizations seeking to enhance higher growth and alleviate poverty in the country. The studies cover various aspects, including the transition from rural agriculture to urban industries and the development of services.

Introduction:
Ethiopia, a landlocked country in East Africa, has undergone significant transformations in recent decades. Despite facing numerous challenges, including droughts, conflicts, and famines, Ethiopia has made remarkable progress in various areas, including economic growth and development. This volume aims to contribute to the understanding of the factors that have influenced Ethiopia's economic growth and development by presenting a comprehensive collection of empirical studies.

Theoretical Framework:
The studies in this volume adopt a diverse range of theoretical frameworks, including economic growth theory, development economics, and institutional economics. These frameworks provide a theoretical foundation for analyzing the factors that contribute to economic growth and development. By integrating these frameworks, the authors aim to shed light on the mechanisms that drive Ethiopia's economic performance and identify areas for policy interventions.

Methodology:
The studies in this volume employ a variety of methodologies, including quantitative analysis, qualitative analysis, and case studies. Quantitative analysis involves the use of statistical tools and models to examine the relationship between different variables and their impact on economic growth. Qualitative analysis, on the other hand, focuses on exploring the underlying factors and drivers of economic growth through in-depth interviews, surveys, and observations. Case studies provide a detailed examination of specific economic sectors or policies in Ethiopia and their effects on economic growth.

Key Findings:
The studies in this volume offer valuable insights into the key factors that have influenced Ethiopia's economic growth and development. Some of the key findings include:

• The role of agriculture in Ethiopia's economic growth: Agriculture remains the dominant sector in Ethiopia's economy, contributing to over 40% of GDP and employing over 80% of the workforce. However, agriculture's productivity and efficiency have been limited by factors such as land degradation, limited access to modern technologies, and inadequate irrigation infrastructure.
  


• The development of infrastructure: Infrastructure development has played a crucial role in promoting economic growth in Ethiopia. The construction of roads, railways, airports, and ports has facilitated the movement of goods and people, reducing transportation costs and increasing trade.
  


• Investment in education: Education has been identified as a key driver of economic growth in Ethiopia. The government has invested heavily in education, particularly in the areas of science, technology, engineering, and mathematics (STEM). This investment has led to the development of a skilled workforce and increased innovation and productivity.
  


• The role of foreign direct investment (FDI): FDI has played a significant role in promoting economic growth in Ethiopia. The country has attracted significant amounts of FDI from various sectors, including manufacturing, agriculture, and tourism. FDI has provided capital, technology, and expertise, which have contributed to the development of new industries and the expansion of existing ones.
  


• The impact of global economic crises: Ethiopia has been affected by the global economic crises, particularly the 2008-2009 global financial crisis and the COVID-19 pandemic. However, the country has shown resilience and has managed to maintain relatively stable economic growth.
  

Policy Implications:
The findings of the studies in this volume have important policy implications for Ethiopia's government and development organizations. Some of the key recommendations include:

• Investing in agriculture: The government should prioritize investment in agriculture to improve productivity and efficiency. This can include the development of irrigation infrastructure, the promotion of sustainable agricultural practices, and the provision of access to credit and other financial services for farmers.
  


• Improving infrastructure: The government should continue to invest in infrastructure development to promote economic growth. This can include the construction of new roads, railways, airports, and ports, as well as the improvement of existing infrastructure.
  


• Promoting education: The government should prioritize education to develop a skilled workforce and promote innovation and productivity. This can include increasing investment in education, particularly in STEM fields, and providing opportunities for vocational training and skill development.
  


• Attracting FDI: The government should continue to attract FDI by providing a favorable business environment, including tax incentives, regulatory frameworks, and infrastructure development.
  


• Mitigating the impact of global economic crises: The government should develop strategies to mitigate the impact of global economic crises, such as building resilience in the economy, diversifying exports, and promoting domestic consumption.
  

Conclusion:
In conclusion, this volume presents a comprehensive collection of empirical studies on the key factors influencing economic growth and development in Ethiopia. The studies offer valuable insights into the challenges and opportunities facing Ethiopia's economy and provide a basis for informed policy interventions. By addressing the issues highlighted in these studies, Ethiopia can continue to make progress in achieving higher growth and alleviating poverty.

Weight: 644g
Dimension: 163 x 242 x 21 (mm)
ISBN-13: 9789811081255
Edition number: 1st ed. 2018