Masterarbeit, 2017
73 Seiten
This study aims to analyze the impact of production expansion of labor-intensive industrial activities on the Ethiopian economy using a Stage CGE modeling approach. The study focuses on the effects of increased efficiency and production in these activities on various aspects of the Ethiopian economy, including macroeconomic performance, trade balance, factor prices, and welfare.
Chapter One introduces the study, providing background information on the Ethiopian economy, outlining the problem statement, objectives, scope, significance, and organization of the research. Chapter Two delves into the Ethiopian economy, reviewing its economic policy throughout different regimes, and examining its characteristics through a SAM-based analysis. Chapter Three presents a literature review, covering both theoretical and empirical studies relevant to the research topic, focusing on the Leontief/Input-Output model, Computable General Equilibrium, and the Armington model.
The primary focus of this study is on the impact of production expansion of labor-intensive industrial activities on the Ethiopian economy. Key areas of investigation include Stage CGE modeling, efficiency improvement, production expansion, macroeconomic performance, trade balance, factor prices, and welfare. The research also utilizes a SAM-based analysis to understand the characteristics of the Ethiopian economy.
The study analyzes the impact of expanding labor-intensive industrial activities on Ethiopia's macroeconomy, household income, and welfare.
Selected sectors include textile, leather products, grain milling, sugar refining, and dairy production.
The study utilized a static stage Computable General Equilibrium (CGE) model based on the 2009/10 Social Accounting Matrix (SAM).
The simulation showed that a 10% increase in technical coefficients of these sectors increased the real GDP by 3.41%.
The study suggests that increasing labor-intensive activities results in welfare gains for both rural and urban households.
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