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An Exploration into the Successful Development of the Leather-Shoe Industry in Ethiopia

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  • Tetsushi Sonobe
  • John E. Akoten
  • Keijiro Otsuka

Abstract

The leather-shoe industry in Ethiopia is thriving, and in the early 2000s it managed to recover the domestic market which had once been swept by imported Chinese shoes. Using primary enterprise-level data, this paper finds that the industry has been growing not only because of a number of new entrants but also because of the growth of enterprises that have been improving product quality and developing new marketing systems. Such multifaceted improvements have been introduced by highly educated entrepreneurs, who have successfully expanded the size of their enterprises. This development pattern is similar to that commonly found in East Asia. Copyright © 2009 Blackwell Publishing Ltd.

Suggested Citation

  • Tetsushi Sonobe & John E. Akoten & Keijiro Otsuka, 2009. "An Exploration into the Successful Development of the Leather-Shoe Industry in Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 719-736, November.
  • Handle: RePEc:bla:rdevec:v:13:y:2009:i:4:p:719-736
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    References listed on IDEAS

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    1. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, January.
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    11. Hildegunn E. Stokke, 2008. "Productivity Growth and Organizational Learning," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 764-778, November.
    12. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
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    Citations

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    Cited by:

    1. Hailu, Kidanemariam Berhe & Tanaka, Makoto, 2015. "A “true” random effects stochastic frontier analysis for technical efficiency and heterogeneity: Evidence from manufacturing firms in Ethiopia," Economic Modelling, Elsevier, vol. 50(C), pages 179-192.
    2. Bräutigam, Deborah & Tang, Xiaoyang, 2014. "“Going Global in Groups”: Structural Transformation and China’s Special Economic Zones Overseas," World Development, Elsevier, vol. 63(C), pages 78-91.
    3. Brixiova, Zuzana & Ncube, Mthuli, 2013. "Entrepreneurship and the Business Environment in Africa: An Application to Ethiopia," IZA Discussion Papers 7553, Institute for the Study of Labor (IZA).
    4. Tetsushi Sonobe & John Akoten & Keijiro Otsuka, 2011. "The growth process of informal enterprises in Sub-Saharan Africa: a case study of a metalworking cluster in Nairobi," Small Business Economics, Springer, vol. 36(3), pages 323-335, April.
    5. Mano, Yukichi & Iddrisu, Alhassan & Yoshino, Yutaka & Sonobe, Tetsushi, 2012. "How Can Micro and Small Enterprises in Sub-Saharan Africa Become More Productive? The Impacts of Experimental Basic Managerial Training," World Development, Elsevier, vol. 40(3), pages 458-468.
    6. Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2011. "An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 67-89.
    7. Sylviane Guillaumont Jeanneney & Ping Hua, 2015. "The impact of Chinese competition on Africa’s manufacturing," Working Papers halshs-01179283, HAL.
    8. Gebreeyesus, Mulu & Mohnen, Pierre, 2013. "Innovation Performance and Embeddedness in Networks: Evidence from the Ethiopian Footwear Cluster," World Development, Elsevier, vol. 41(C), pages 302-316.
    9. Girum Abebe, 2012. "Ownership, Management Practices, Upgrading, and Productivity in the Metalworking sector: Evidence from Ethiopia," Working Papers 009, Ethiopian Development Research Institute.
    10. repec:spr:annopr:v:248:y:2017:i:1:d:10.1007_s10479-016-2225-1 is not listed on IDEAS
    11. Diao, Xinshen & McMillan, Margaret S., 2014. "Towards understanding economic growth in Africa: A reinterpretation of the Lewis Model:," IFPRI discussion papers 1380, International Food Policy Research Institute (IFPRI).
    12. Otsuka, Keijiro & Sonobe, Tetsushi, 2012. "The Role of Training in Fostering Cluster-Based Micro and Small Enterprises Development," WIDER Working Paper Series 099, World Institute for Development Economic Research (UNU-WIDER).
    13. Fahd Rehman, 2012. "Human Capital and MultifacetedInnovation: Evidence from the Lahore Knitwear Cluster in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 63-86, July-Dec.
    14. repec:bla:rdevec:v:21:y:2017:i:4:p:1401-1424 is not listed on IDEAS
    15. Kidanemariam Berhe Hailu & Kaoru Tone, 2014. "Setting handicaps to industrial sectors in DEA illustrated by Ethiopian industry," GRIPS Discussion Papers 14-07, National Graduate Institute for Policy Studies.
    16. Girum Abebe & Florian Schaefer, 2014. "High Hopes and Limited Successes: Experimenting with Industrial Polices in the Leather Industry in Ethiopia," Working Papers 011, Ethiopian Development Research Institute.
    17. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.

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