Structural Changes and Economic Dynamics: The Case of Ethiopia

The study investigates structural changes and economic dynamics of Ethiopias economy from 1991 to 2018. Ethiopia has emerged as a significant success development, with a sustained and notable rapid GDP growth rate of 10.44 per cent and an annual income per capita growth rate of 7.41 per cent for over a decade (2004-2018). This growth surpasses the average annual per capita growth rates of other low-income countries and regions, positioning Ethiopia among the fastest growing economies worldwide and showcasing its ability to excel in economic development, which engenders hope for its future. Nonetheless, the rate of structural changes, which refers to the shift in the composition of an economy from low-productivity sectors to high- productivity sectors, has been minimal and in an undesired direction associated with industrialization, despite achieving substantial economic growth and increases in per capita. The book aims to investigate the factors that restrict the pace and trajectory of structural changes, taking into account the specific context of the country and employed detailed sectoral and sub-sectoral data.