Thesis Open Access
ESKINDER ATNAFU BERHE; Dr. Dugasa Mulugeta
Industrial parks can serve to overcome hurdles that developing countries face to achieve fast and sustainable economic development such as market imperfection and barriers to access to information, technology, and finance; as well as high transaction costs because of lack of infrastructure and weak institutions. The main objective of this study is to assess the challenges and contribution of Industrial Park Developments to the national and local economy and social development. Both primary and secondary data were employed. Questionnaire, key informant interview and observation were the main data collection instruments from the case study of different manufacturing Industry zone. Out of the 28(19 from Government and 9 from private) planned and operational industrial Parks 3 manufacturing industry parks (2 from government and one from private ) were addressed by this study. Among the Parks, Bole Lemi I IP, Hawasa IP, and Eastern industry Zone are operational Parks that were addressed. The quantitative data were analyzed using descriptive statistics and the results are presented in tables and figures. Narration method was employed to analyze the qualitative data. The findings of the study indicated that industrial parks have contributed to the national as well as local economy in terms of employment generation, income tax, capital investment, and export and import substitution, technology transfer and cultural integration. Furthermore, the research finding showed that shortage of raw materials, delay on the logistic service, shortage of foreign exchange and problems related to government rules and procedures as the constraints faced by the companies. Inefficiency of workers, communication barriers, lacks of enough training and organizational structure problems on the other hand are considered as internal problems faced by the companies. In general, there is a need for strengthening the growth of industrial parks and thereby enhancing their socio-economic contributions by minimizing the challenges.