1 Chapter 33 The Ethiopian manufacturing sector: Productivity, export orientation, and competitiveness 1 Admasu Shiferaw and Måns Söderbom Abstract Over the last two decades the Ethiopian manufacturing sector has experienced rapid expansion in terms of the number of firms, sales, and employment. This chapter examines the performance of the manufacturing sector using aggregate data and firm-level panel data compiled by the Central Statistical Agency (CSA) of Ethiopia. The focus is on three dimensions of performance: productivity growth, the extent of export orientation, and the competitiveness of domestic firms in the global context. Manufacturing remains a relatively small sector in terms of contributions to GDP and employment, and it has yet to become export oriented even by African standards. In examining productivity growth, the analysis addresses within-firm productivity growth and its heterogeneity across firms, as well as the role of resource reallocation from less efficient firms to more efficient ones. Key words: Ethiopia, manufacturing, productivity, firm size, firm survival, firm performance ________ 1 We are grateful to Christopher Cramer for insightful comments on draft versions of this paper. All errors are our own. Söderbom would like to dedicate this chapter to the memory of his friend Krister Backlund who passed away in May 2018.