IDEAS home Printed from https://ideas.repec.org/a/oup/jafrec/v21y2012isuppl_2p-ii151.html
   My bibliography  Save this article

Firm Size and Structural Change: A Case Study of Ethiopia-super- †

Author

Listed:
  • Måns Söderbom

Abstract

I use firm-level census data to study changes in the structure of Ethiopia's manufacturing sector between 1998 and 2008. Over this period, aggregate manufacturing value-added grew at the same rate as GDP, the number of manufacturing firms more than doubled, and average firm size fell by more than 40%. I highlight substantial heterogeneity in economic performance across firms, and emphasise a strong association between firm size and value-added per worker. I find that 29% of the value-added size gap can be attributed to differences in product selection across small and large firms. I find no systematic difference in the output price charged by small and large firms for a given product. I therefore attribute the remaining value-added size gap to a higher level of physical labour productivity in large than in small firms. I conclude that small and large firms in Ethiopia use quite different technologies to produce similar products, and that an increase in the number of large firms would raise value-added per worker and ultimately GDP per capita in the country. Copyright 2012 , Oxford University Press.

Suggested Citation

  • Måns Söderbom, 2012. "Firm Size and Structural Change: A Case Study of Ethiopia-super- †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(suppl_2), pages -151, January.
  • Handle: RePEc:oup:jafrec:v:21:y:2012:i:suppl_2:p:-ii151
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jae/ejr046
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul Collier, 2013. "Aid as a Catalyst for Pioneer Investment," WIDER Working Paper Series wp-2013-004, World Institute for Development Economic Research (UNU-WIDER).
    2. Andrew Kerr & Bruce McDougall, 2020. "What is a firm census in a developing country? An answer from Ghana," SALDRU Working Papers 262, Southern Africa Labour and Development Research Unit, University of Cape Town.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:21:y:2012:i:suppl_2:p:-ii151. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press The email address of this maintainer does not seem to be valid anymore. Please ask Oxford University Press to update the entry or send us the correct address or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.