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Structural change in Ethiopia

Pedro M. G. Martins

Development Policy Review, 2018, vol. 36, issue S1, O183-O200

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.

Date: 2018
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