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Structural change and industrial policy: A case study of Ethiopia’s leather sector

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  • Michael Mbate

    (London School of Economics and Political Science)

Abstract

Recent empirical evidence underscores the vital role of industrial development in fostering structural change and promoting a country’s long-run development objectives. Devising sound industrial policy institutions emerges as a key policy option to promote the reallocation of human, physical and financial resources to high value added sectors of the economy. This paper examines the rationale for industrial policy, why it has been ineffective in most African countries and what policy lessons should be distilled from past experiences. Using the Ethiopian leather and leather product sector, it examines how industrial policies are formulated and implemented in practice. The paper concludes by highlighting key industrial policy instruments that other countries can take into account in order to accelerate industrial development and structural change in Africa.

Suggested Citation

  • Michael Mbate, 2016. "Structural change and industrial policy: A case study of Ethiopia’s leather sector," Journal of African Trade, Springer, vol. 3(1), pages 85-100, March.
    • Handle: RePEc:spr:jouafr:v:3:y:2016:i:1:d:10.1016_j.joat.2017.01.001
    DOI: 10.1016/j.joat.2017.01.001
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    More about this item

    Keywords

    Industrial policy; Structural change; Institutions; Ethiopia;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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