STRUCTURAL TRANSFORMATION AND INDUSTRIAL POLICY
STIP is a comprehensive research and policy support program on STRUCTURAL TRANSFORMATION AND INDUSTRIAL POLICY in Ethiopia. The program is designed to run concurrently with the second Growth and Transformation Plan (GTP-II), serving as a knowledge backstop for policymakers and other key stakeholders.
The program focuses on the strategic areas of light manufacturing development and agricultural transformation as well as the broader agenda of structural change. The range of activities that are be undertaken by a network of local and international experts includes applied research, knowledge management, policy analysis and capacity building. The program’s ambition is to contribute to evidence-based policymaking, monitoring and evaluation in the critical areas of industrial development and structural transformation in Ethiopia
-
STIP is hosted in and directed by the Ethiopian Development Research Institute (EDRI). The program is designed broadly enough to be able to create a platform for multiple stakeholders to partner with EDRI in various aspects of the initiative including research, knowledge management and capacity building. The core program is funded by Agence Française de Développement (AFD).
Manufacturing Competitiveness
This study will attempt to provide an overview of the challenges facing the manufacturing sector in Ethiopia in terms of enhancing competitiveness in a fast-changing global environment. We will look at the issue of competitiveness in the context of global value chains and the increasing importance of ‘trade in tasks’. The study builds on existing studies such as the Diagnostic Trade Integration Study of the World Bank to provide a more complete picture of competitiveness in recent years. The outputs of this analysis will be utilized in two ways. First, they serve as a foundation for more specific studies in subsequent periods. Second, they will inform policymaking immediately.
Governance of Industrial Policy
This study aims to provide a broad analysis of the institutional mechanisms for industrial policy making and implementation as well as the instruments of industrial policy in Ethiopia. We will examine the coherence of industrial policy and the level of state capacity available to implement industrial policy. In terms of instruments, we will try to cover a wide range of policy tools including taxes, subsidies, exchange rate regime, finance, land policy and technology policy. Given the centrality of tax policy for socioeconomic development, we will look further into how globalization might have affected Ethiopia’s ability to use taxes as an instrument for industrial development.
Export Performance in Ethiopia’s Manufacturing Sector
This study will extend the analysis we have conducted on commercial policies and export performance in Ethiopia. The previous study has examined whether commercial policies such as the tariff and exchange rate regimes are consistent with the export promotion strategy of the country. In the present study, we will look into the effects of export subsides and the structure of trade cost on export competitiveness.