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Structural change in Ethiopia

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  • Pedro M. G. Martins

Abstract

This article investigates the pace and pattern of structural change in Ethiopia. It departs from the existing literature in two main ways. First, it uses a methodology that enables a more comprehensive assessment of structural change. Second, it entailed the construction of a consistent dataset for Ethiopia—comprising three labour force surveys—tracking 10 economic sectors between 1999 and 2013. Our analysis suggests that the structure of production has changed considerably, but that shifts in the composition of employment have lagged behind. Output per capita growth has been strong and mainly driven by within†sector productivity improvements. However, the contribution of structural change has increased over time, which is encouraging. Evidence of a growing demographic dividend is also uncovered.

Suggested Citation

  • Pedro M. G. Martins, 2018. "Structural change in Ethiopia," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 183-200, March.
    • Handle: RePEc:bla:devpol:v:36:y:2018:i:s1:p:o183-o200
    DOI: 10.1111/dpr.12222
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    References listed on IDEAS

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    1. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    2. Chenery, Hollis & Taylor, Lance, 1968. "Development Patterns: Among Countries And Over Time," Center for International Affairs (CIA) Archive 294545, Harvard University, Center for International Affairs.
    3. Dani Rodrik, 2018. "An African Growth Miracle?," Journal of African Economies, Centre for the Study of African Economies, vol. 27(1), pages 10-27.
    4. Ahmed, S. Amer & Cruz, Marcio & Go, Delfin S. & Maliszewska, Maryla & Osorio-Rodarte, Israel, 2014. "How significant is Africa’s Demographic Dividend for Its Future Growth and Poverty Reduction?," Conference papers 332459, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Anthony Shorrocks, 2013. "Decomposition procedures for distributional analysis: a unified framework based on the Shapley value," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 99-126, March.
    6. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    7. repec:bla:devpol:v:27:y:2009:i:5:p:483-502 is not listed on IDEAS
    8. repec:wbk:wbpubs:2245 is not listed on IDEAS
    9. Martins, Pedro, 2014. "Structural change in Ethiopia : an employment perspective," Policy Research Working Paper Series 6749, The World Bank.
    10. Andy McKay, 2013. "Growth and Poverty Reduction in Africa in the Last Two Decades: Evidence from an AERC Growth-Poverty Project and Beyond," Journal of African Economies, Centre for the Study of African Economies, vol. 22(suppl_1), pages -76, January.
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    Cited by:

    1. Dorosh, Paul A. & Thurlow, James & Kebede, Frehiwot Worku & Ferede, Tadele & Taffesse, Alemayehu Seyoum, 2018. "Structural change and poverty reduction in Ethiopia: Economy-wide analysis of the evolving role of agriculture," ESSP working papers 123, International Food Policy Research Institute (IFPRI).
    2. Derek Headey & Kalle Hirvonen & John Hoddinott & David Stifel, 2019. "Rural Food Markets and Child Nutrition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1311-1327.
    3. Wan Amir Azlan Wan Haniff & Rahmah Ismail & Suzanna Mohamed Isa & Rozlinda Mohamed Fadzil & Syed Sagoff AlSagoff & Kartini Aboo Talib @ Khalid & Hakimi Hassan & Nurina Awanis Mohamed, 2020. "Childrens Toy Safety Standards in Malaysia and ASEAN: Towards Single Regional Regulation of Lead-Based Paints and Children Toys," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(9), pages 483-495, September.
    4. World Bank, 2020. "Ethiopia Poverty Assessment," World Bank Publications - Reports 33544, The World Bank Group.
    5. Emelie Rohne Till, 2021. "A green revolution in sub‐Saharan Africa? The transformation of Ethiopia's agricultural sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 277-315, March.

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