Page 81 - Azerbaijan State University of Economics

Abrehet Mehari: Factors Affect The Productivity of Large And Medium -Scale
Manufacturing Industry In Ethiopia

The total number of firms:

As depicted in Figure-1, the total number of large and medium scale manufacturing
industries are continuously increasing from time to time. In 2001 the total number of
large and medium scale manufacturing firms was 642. After ten years this number has
almost doubled and reached 1243 in 2006. In the next eleven years, the number of large
and medium scale manufacturing firms has increased by around three-fold and reached
3627 in 2017. This significant increment in the number of firms and employment is due
to the government interventions to support the manufacturing sector through a range of
incentives like favorable land lease rates, access to commercial credit, free imports of
inputs, generous tax breaks, together with substantial investments to improve
infrastructure and human capital (Ansu et al., 2016).

The distribution of the firms by sector is reported in figure 1. Accordingly, agro-
processing, chemical and mineral products, and wood products are more than 50%
of the large and medium scale manufacturing firms.

Figure 2: Share Of Jobs Created By Large and Medium- Scale Manufacturing
Industry By Sector (2001-2017)

Source: Own computation based on CSA data

Jobs/employment created:
As depicted in Figure 2 the total size of jobs opportunity by the large and medium
scale manufacturing sector is generally increasing during the last two decades,
except for the year 2015.

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