The Role of Ethiopian Medium and Large Scale Manufacturing Industries in Strengthening Rural-Urban Linkages
| Title | The Role of Ethiopian Medium and Large Scale Manufacturing Industries in Strengthening Rural-Urban Linkages |
| Publication Type | Journal Article |
| Year of Publication | 2014 |
| Authors | Balcha, LLemma, Serbeh-Yiadom, KC, Asfaw, M |
| Journal | Developing Country Studies |
| Volume | 4 |
| ISSN | 2224-607X |
| Keywords | agroallied manufacturing, export-quality raw material, forward/backward integration, interdependence, rural-urban |
| Abstract | Contemporary economic theory sees the manufacturing industry as a strategic tool for strengthening rural-urban
linkages and for bringing overall economic development and poverty eradication. This is due to the
interdependence of the rural and urban economies in developing countries. However, the Ethiopian medium and
large scale manufacturing industry does not appear to be on the right track in their relationship to the agricultural
sector as required by the Agricultural Development Led Industrialization [ADLI] policy. Most Ethiopian
manufacturing establishments are known for their high dependence on imported raw materials and for their
operating below capacity. Past studies failed to realize the potential benefits of creating production linkages by
reinforcing rural-urban links across the country. The objective of this paper is to evaluate the capacity of medium
and large scale manufacturing industries (MLSMIs) to forge rural-urban relationships that will assist towards
achieving the goals of ADLI. The methodology for putting the paper together is by drawing results from the
ongoing doctoral research1 by the author. That study is based on a mixed data approach using both quantitative
and qualitative methods and with a questionnaire survey as the main data collection tool. The research question
addressed in this paper is what role can medium and large scale manufacturing industries play to strengthen
rural-urban economic linkages? There is every reason to believe that manufacturing industries have the capacity
to expand their demand for local agricultural raw material. Rural areas, on the other hand, have an equally
dependable appetite for agro-allied products such as fertilizers, pesticides, and farming machinery.
Unfortunately, the paper finds from the study that as high as 52.7 percent of existing industries in the four casestudy
areas are wholly or partially dependant on imported raw materials and that only 9.9 percent appear
involved in the production and supply of agricultural inputs. Strangely, however, as much as 44.6 percent of the
study’s respondents chose the main reason hindering linkages as the unavailability of preferred and export
quality raw materials in the local market. The paper is structured into five sections; the introduction, literature
review, methodology, findings and conclusion (incorporating some suggested recommendation).
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