EDRI is uniquely placed to ensure that data and research output are fed into the strategy and policy making processes directly and through its established practice of disseminating research results to all ministries and other stakeholders.

EDRI is partially financed by the government but has been increasingly diversifying its core funding sources: it received from among others TTI/IDRC, ACBF, Bill & Melinda Gates Foundation, AFD, DFID, Norwegian Royal Embassy, EFD, and GGGI. Through time EDRI has also developed wide research networks. It has been working with a large number of reputed research organization/academic institutions including IFPRI/ESSP, FADI/GRIPS (Japan), IGC (UK), CSAE (University of Oxford), JICA, AFD, TTI, Norwegian Royal Embassy, EfD, GGGI, UCL, NCE, and SEDRI (Stanford University). It is receiving increasingly large number of requests for collaboration from local, regional and international organizations/institutions and researchers.

EDRI has recently received a three-year research grant from the European Union (EU) to conduct rigorous research on four thematic areas. In what follows the four thematic areas are briefly described.

The Entrepreneurship and Small Business Development (ESBD) research program is a long-term research program initiated by the Ethiopian Development Research Institute (EDRI) in 2016.   The research program is aimed to fill the existing knowledge gap regarding the development of entrepreneurship and Micro and Small Enterprises (MSEs) in Ethiopia.

The Entrepreneurship and Small Business Development (ESBD) research program core objectives are:

1. To conduct rigorous research and produce evidence-based knowledge that can be used to improve the existing policies and practices of the government and all other relevant actors working on MSEs and;

2. To build a stronger and more integral knowledge support system and database within the country to underpin future policy analysis in small business development.

Toward this the research program has developed detailed work plan for the first three years (July 2016 – June 2019), which involves a baseline data collection from 8174 MSMEs, analysis and outreach to various stakeholders. The implementation of the program is underway as per the plan. The program is financed by the European Union, International Development Research Centre (IDRC) of Canada and the Environmental and Climate Research Centre (ECRC).

The Principal Investigator for this project is Dr. Mulu Gebreeyesus, who is a research fellow at EDRI. The co-investigators are Dr. Tigabu Degu, Dr. Girum Abebe and Dr. Berhiu Assesfa and all research fellows at EDRI and Prof. Wim Naude, Dean of the Maastricht School of Management and Chair in Business and Entrepreneurship in Emerging Markets in the Maastricht.

Dissemination Workshop October 24, 2017
Baseline Survey Report: Main Features of manufacturing MSEs in Ethiopia

Principal Investigator
Berihu Assefa Girum Abebe Tigabu Degu Getahun (PhD)

The government of Ethiopia (GOE) in partnership with a multi-donor community is initiating SME Finance Project (SMEFP) to promote growth of SMEs in Ethiopia through access to finance and business development services. The project intends to reach over 4,000 SMEs in the manufacturing, agro-processing, construction and tourism sectors, and will be implemented by the Government of Ethiopia through the Ministry of Industry. One component of the SMEFP is impact evaluation of the program providing finance and business development services to SMEs.

The World Bank and the Ethiopian Development Research Institute (EDRI) are partnering to jointly undertake the impact evaluation studies. The SMEFP impact evaluation project will run for three years (Jan 2017 – Dec. 2019). The World Bank team will provide technical assistance in survey design and engage in analysis and dissemination. EDRI, on the other hand, will administer the data collection (12,000 questionnaire/enterprises) and take part in the research design, instruments development, empirical analysis, and facilitate the dissemination of outputs.

The Principal Investigator and Co-investigator for this project is Dr. Mulu Gebreeyesus, and Dr. Tigabu Degu, both are research fellows at EDRI.

Principal Investigator

Notwithstanding recent spurt in growth averaging around 10% in the past decade, the Ethiopian manufacturing sector appears to be plagued with low productivity, high labour turnover, and poor competitiveness. Similarly, manufacturing contribution towards GDP and GDP growth remained at 4 % and 0.5 % in 2013/14 respectively, while its contribution towards merchandize export rarely exceeded 10% (World Bank, 2015). Without sustained increase in productivity and in the value added and employment share of labour in the manufacturing sector, economic growth alone fails to trigger structural transformation. To sustain growth and meet the stated industrialization objectives of the country, it is thus important to understand and overcome the key challengers related with limited employment growth, low productivity and poor competitiveness of the manufacturing sector.

The general objective of the study is thus twofold. First, it investigates the major determinants and trajectories of employment, wage structure, productivity, and competitiveness of selected manufacturing sectors in Ethiopia and establish a baseline for a longitudinal study. Second, it analyses the nexus between employment, productivity and wage structure. In tandem with these objectives, the project will construct a baseline data against which changes in employment, wage structure, productivity and competitiveness of the manufacturing sector will be explored in selected key priority sectors in the GTP II period and beyond. This will involve at least two rounds of primary data collection from selected sectors. This project will run for three years starting January 2017.

The Principal Investigator for this project is Dr. Tigabu Degu, a research fellow at EDRI. The co-investigators are Dr. Girum Abebe, a research fellow and Dr. Gebrehiwot Ageba, senior researcher at EDRI.

Principal Investigator

This project aims to undertake two interlinked activities:

(i) update the Input Output Table and National Social Accounting Matrix of the country; and

(ii) prepare research and policy outputs using SAM based multiplier analysis and a Computable General Equilibrium (CGE) model of the economy.

The current IO table and SAM for Ethiopia was produced in 2010 using data from 2005/06. As a result, any analysis that is done regarding the impact of external shocks, social transfers, and other government policies is done using a dataset that does not adequately reflect the current economic structure of the country. Our proposed solution is to update the national SAM using the new survey data (such as the Household Consumption Expenditure Survey) and input output table we intend to generate. The combination of the two (updated IO and SAM) will enable us to produce an up to date information set regarding the production relation between sectors of the economy, the consumption and saving patterns of different groups of households, investment and transfer policies of the government, etc.