Structural Change in Ethiopia : An Employment Perspective

This paper investigates whether the Ethiopian economy is undergoing a virtuous process of structural change. In particular, it assesses the relative contributions of within-sector and between-sector productivity to output per capita growth. Based o...

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Bibliographic Details
Main Author: Martins, Pedro
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
GDP
WEB
Online Access:http://hdl.handle.net/10986/16829
Description
Summary:This paper investigates whether the Ethiopian economy is undergoing a virtuous process of structural change. In particular, it assesses the relative contributions of within-sector and between-sector productivity to output per capita growth. Based on data disaggregated into eight sectors for the period 1996-2011, the analysis suggests that the structure of output has changed considerably -- predominantly from agriculture to services -- but changes in the composition of employment have lagged behind. Labor productivity growth has been strong across most sectors, albeit mainly driven by within-sector productivity improvements. Nonetheless, the pace of structural change is accelerating and its relative contribution to output growth is increasing.