This research investigates the Ethiopian economy's sectoral linkages. It examines the forward and backward production and total linkages of the industry with the agriculture and service sectors. The import penetration and export intensity of the agriculture-based industry and the manufacturing industry are also discussed. The study used the Ethiopian Social Accounting Matrix (SAM) database and made a multiplier analysis to explore the linkages and estimate the multiplier coefficients. The results show that agriculture has a relatively strong linkage with other sectors while the agriculture-based industry has weak forward linkages, and the manufacturing industry has weak backward and forward linkages with other sectors of the economy.
The multiplier analysis shows that an exogenous shock to the agriculture-based industry has a higher multiplier effect than a shock to the manufacturing industry. Economic policy should focus on agriculture-based industry investments to positively augment the Ethiopian industrialization process and the overall economy.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.