Understanding industrial parks

Ethiopia has recently launched an ambitious program of industrialisation. This fast-growing, densely populated country hopes to attract foreign investment in its brand-new industrial parks by offering a large workforce, competitive wages, cheap electricity and good infrastructure.

Several garment factories have already started production in the industrial park of Hawassa, in the south of the country. However, despite the initial enthusiasm, many companies that operate in the park have not yet reached the productivity levels that would make their investment sustainable.

In this project, the researchers will design and evaluate interventions aimed at boosting worker productivity in the industrial park of Hawassa. This evidence will inform industrial policy in Ethiopia and in other countries that are currently looking to emulate Ethiopia’s experiment with industrialisation.

International Growth Centre