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

Michael Mbate

Journal of African Trade, 2016, vol. 3, issue 1, 85-100

Abstract: 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.

Keywords: Industrial policy; Structural change; Institutions; Ethiopia (search for similar items in EconPapers)
JEL-codes: L52 L67 L78 O55 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1016/j.joat.2017.01.001

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