Abstract
Manufacturing industry significantly has a positive effect on economic transformation through creating employment, poverty reduction, reducing regional disparities, and export product diversification. The study analyzed the investment climate constraints on manufacturing industry in Dire Dawa City, Eastern Ethiopia. The study used primary and secondary data sources. These include questionnaires, interview, and observation. The secondary data also gathered from published and unpublished sources. The target populations were operational manufacturing firms found in the study area. Out of 67 manufacturing firms, 57(85%) of firms were taken as a sample using census study. These 57 firms selected using stratified and systematic probability sampling techniques. Different government officials and participants of in-depth interviewee were selected using purposive sampling. The data analyzed using descriptive statistics. The study has found that financial factors, institutional factors, infrastructure, social, economic, environmental, political factors, raw material availability and capacity utilization severely influencing the manufacturing industry in the study area. Thus, a good investment climate requires reaching and attaining the right economic growth and transformation. The city government should change the existing organizational structure to encourage the manufacturers and also to speed up industrialization. Keywords: Manufacturing Industry, Investment Climate, Constraints, Dire Dawa, Ethiopia DOI : 10.7176/IEL/9-4-04 Publication date :May 31 st 2019
Highlights
1.1 Background of the Study Manufacturing industry significantly plays a crucial role in socioeconomic development to accelerate economic transformation in the national economy
The manufacturing sector significantly contributes to the Ethiopian economy and employs about 173 thousand people in the year 2012/2013 (AACCSA, 2014)
Despite the fact that there is no research done about investment climate constraints of private investment in the study area
Summary
1.1 Background of the Study Manufacturing industry significantly plays a crucial role in socioeconomic development to accelerate economic transformation in the national economy. The manufacturing sector significantly contributes to the Ethiopian economy and employs about 173 thousand people in the year 2012/2013 (AACCSA, 2014). The research is relevant and serves as an empirical foundation for further research work on the issue of investment climate constraints in Dire Daw City. It will city government and trade, industry and investment bureau need to act optimistically to solve the manufacturing firms’ problems. Despite the fact that there is no research done about investment climate constraints of private investment (manufacturing industry) in the study area. This research was conducted with the aim of filling the gaps and significant contribution to the development of manufacturing industry
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