Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience

Ethiopia has integrated Special Economic Zones (SEZs), named Industrial Parks, as the central element of its industrial policy over the past decade. This study investigates the Ethiopian experience with SEZs with a focus on the interaction of state actors with non -state acto...

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Main Author: Amanuel Tesfaye
Format: Article
Language:English
Published: Addis Ababa University 2021-12-01
Series:Ethiopian Journal of the Social Sciences and Humanities
Subjects:
Online Access:http://ejol.aau.edu.et/index.php/EJSSH/article/view/6409/5026
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author Amanuel Tesfaye
author_facet Amanuel Tesfaye
author_sort Amanuel Tesfaye
collection DOAJ
description Ethiopia has integrated Special Economic Zones (SEZs), named Industrial Parks, as the central element of its industrial policy over the past decade. This study investigates the Ethiopian experience with SEZs with a focus on the interaction of state actors with non -state actors including investors and laboursin the development of its industrial parks. The central objective of the paper is to investigate how state actors and institutions evolved to shape and structure the deployment of Industrial Parks as an instrument of industrial policy in Ethiopia. The research is qualitative and based on secondary data and documentary evidence including published literature, government policy documents, legislations, regulations, and openly accessible information from local and international organizations. Process tracing is employed to systematically trace the evolution of policy, institutional, and regulatory frameworks. The primary finding of the study is that while the Ethiopian state has demonstrated considerable learning in the development of its industrial parks and managed to integrate the strategy well into its industrial policy, it lacks leverage over transnational capital to enforce technology transfer and create linkages within the local economy. This is compounded by a weak domestic private sector and disillusioned labour, which complicates efforts to improve productivity and foster local ownership. These two challenges might derail the effort to leverage industrial parks for broad-based transformation.
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spelling doaj.art-532a72d3ee384d3184a7249fe545bae42023-05-28T12:18:45ZengAddis Ababa UniversityEthiopian Journal of the Social Sciences and Humanities1810-44872520-582X2021-12-011722553Special Economic Zones as Instruments of Industrial Policy: The Ethiopian ExperienceAmanuel Tesfaye0Lecturer, Department of Political Science and International Relations, College of Social Sciences, Addis Ababa UniversityEthiopia has integrated Special Economic Zones (SEZs), named Industrial Parks, as the central element of its industrial policy over the past decade. This study investigates the Ethiopian experience with SEZs with a focus on the interaction of state actors with non -state actors including investors and laboursin the development of its industrial parks. The central objective of the paper is to investigate how state actors and institutions evolved to shape and structure the deployment of Industrial Parks as an instrument of industrial policy in Ethiopia. The research is qualitative and based on secondary data and documentary evidence including published literature, government policy documents, legislations, regulations, and openly accessible information from local and international organizations. Process tracing is employed to systematically trace the evolution of policy, institutional, and regulatory frameworks. The primary finding of the study is that while the Ethiopian state has demonstrated considerable learning in the development of its industrial parks and managed to integrate the strategy well into its industrial policy, it lacks leverage over transnational capital to enforce technology transfer and create linkages within the local economy. This is compounded by a weak domestic private sector and disillusioned labour, which complicates efforts to improve productivity and foster local ownership. These two challenges might derail the effort to leverage industrial parks for broad-based transformation.http://ejol.aau.edu.et/index.php/EJSSH/article/view/6409/5026industrial policyspecial economic zonesindustrial parksethiopia
spellingShingle Amanuel Tesfaye
Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
Ethiopian Journal of the Social Sciences and Humanities
industrial policy
special economic zones
industrial parks
ethiopia
title Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
title_full Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
title_fullStr Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
title_full_unstemmed Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
title_short Special Economic Zones as Instruments of Industrial Policy: The Ethiopian Experience
title_sort special economic zones as instruments of industrial policy the ethiopian experience
topic industrial policy
special economic zones
industrial parks
ethiopia
url http://ejol.aau.edu.et/index.php/EJSSH/article/view/6409/5026
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