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This study aims to evaluate the effectiveness of tax incentives provided by the Ethiopian government in spurring private investment and job creation, using unique administrative and survey data.

The study employs a dataset covering large- and medium-scale manufacturing in Ethiopia from 2012 to 2018, combined with administrative data on actual tax payments and statutory obligations to gauge the impact of tax incentives. Regression analysis using the generalized method of moments (GMM) is used to examine the relationship between tax incentives and employment, taking into account variations in production, distribution and financial costs.

The study finds that tax incentives do not significantly affect employment at conventional significance levels. The incentive elasticity of employment appears to diminish as production, distribution and financial costs increase. Consequently, the incentives provided by the government have not had a substantial impact on employment generation within the manufacturing sector.

This study is unique for its comprehensive analysis of tax incentives in the Ethiopian manufacturing sector using both administrative and survey data. It highlights that increasing production and financial costs can offset the employment benefits of these incentives, emphasizing the need for a more favorable business environment for private investors.

The purpose of this paper is to analyze the ongoing revival of industrial and innovation policies across developed and developing economies.

The paper compare the scale and scope of recent industrial and innovation policy initiatives across developed and developing economies. Also, it analyzes recent data regarding R&D investments and other innovation indicators.

There are enormous disparities across economies in their capacity to implement industrial policies, particularly those to support science, technology and innovation. Most developed economies, and a few developing economies, are implementing bold, ambitious and medium-term innovation policies towards bolstering R&D investments, supporting advanced manufacturing and green energies and strengthening technological capabilities. Amid lack of fiscal policy space and vulnerable debt sustainability positions, institutional deficiencies and weak innovation ecosystems, developing economies – particularly in Africa and Latin America – face enormous challenges to implement strategic industrial and innovation policies.

Under the current economic, financing and institutional conditions, together with subdued global trade and ongoing geopolitical fragmentation, the technological divide and innovation asymmetries across economies will likely widen even further, paving the ground for a “development divergence” in the coming decade.

The paper analyzes the implications of the current industrial and innovation policy trends across developed and developing countries. Under the current economic, financing and institutional conditions, together with subdued global trade and ongoing geopolitical fragmentation, the technological divide and innovation asymmetries across economies will likely widen even further, paving the ground for a “development divergence” in the coming decade.

One of the achievements of the fourth industrial revolution is smart manufacturing, a manufacturing system based on Industry 4.0 technologies that will increase systems' reliability, efficiency and productivity. Despite the many benefits, some barriers obstruct the implementation of this manufacturing system. This study aims to analyze these barriers.

One of the measures that must be taken is to identify and try to remove these barriers, which involves identifying the stakeholders and components of technology associated with each barrier. As such, the primary purpose of this paper is to present a systematic literature review in the field of smart manufacturing with a focus on barriers to implementation related to the stakeholders and components of technology.

This research conducted a systematic literature review in Scopus and Web of Science databases and considered the studies published until 2021 were examined. The central question of this paper is answered based on this literature review, in which 133 related studies and 15 barriers were identified.

The significant gap observed in the literature review is that no research has been conducted to determine the stakeholders and components of technology related to the barriers, making it a potentially worthwhile subject for future research. In addition, the results of this study may help managers to implement smart manufacturing.

This study provides two main originalities. The former is helpful information for managers to make effective decisions when they face smart manufacturing barriers. The latter is related to identifying critical research gaps through systematic literature review.

The purpose of this study is to examine the relationship between the productive structure and the size of the informal economy in Latin American countries.

The study employs econometric techniques for panel data covering the period from 2002 to 2017 and considering 17 Latin American countries. The evidence presented is based on the informal economy data generated by Medina and Schneider (2018) who estimate the size of the informal economy using a structural equation model and the share of manufacturing in total employment as a measure of the size of the manufacturing sector. Also, the study addresses the possible endogeneity bias in the relationship studied and makes the conclusions more robust, thus avoiding spurious correlations that weaken the findings.

The results indicate that most industrialized Latin American countries are associated with a smaller size of the informal economy.

The findings have important policy implications, as they suggest that Latin American economies need to switch the structure of the economy toward more sophisticated productive structures if they want to reduce the size of the informal economy. Thus, more efforts should be deployed to policies to diversify and upgrade economies.

The study contributes to the literature on the informal economy by connecting the country’s productive structure and informality. Specifically, the results show that the productive structure of countries is a plausible explanation for the size of the informal economy.