When industrial policy fails to produce structural transformation: the case of Ethiopia
Vrolijk, Kasper (2021)
Externe Publikationen
Despite the increasing foreign investment in many African economies, their participation in trade, and the economic growth that follows from it, structural transformation has remained limited. This blog takes a look at Ethiopia’s industrial policy and argues that the government has failed to sufficiently emphasize innovation in—and technology transfer to—domestic firms, leading to minimal “upgrading” of low to high value-added activities.