RIFT VALLEY UNIVERSITY ABICHU CAMPUS,

Determinant Factors of Labor Productivity in Ethiopian Garment

Industry; (The case of Local firm)

By
Bontu Hunde Ameya

A Thesis Submitted to the College of Business Administration for the

Partial Fulfillment of the Requirement for the Degree of Master of

Business Administration.

March, 2022

ii
 RIFT VALLEY UNIVERSITY ABICHU CAMPUS,
College of Business Administration

Determinant Factors of Labor Productivity in Ethiopian Garment

Industry; (The case of Local firm)
By
Bontu Hunde Ameya

Examiner: ________________________Signature: ___________Date: ___________

Examiner: ________________________Signature: ___________Date: ___________
Thesis Advisor: Signature: Date: _______________Signature: ________Date: _________
Thesis Co-Advisor: Signature: Date: ____________Signature: ________Date: _________

iii
 Dedication

I dedicate this work to my lovely mother Aregash Bekana for made me to being myself, to
my husband Shimelis Korme and to our children Abenezer Shimelis, Asanti Shimelis and
Ifnan Shimelis. Thanks for your love and support. You are valued.

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 Statement of the Author

I hereby declare that the work which is being presented in this thesis entitle “Determinant
Factors of Labor Productivity in Ethiopian Garment Industry; (The case of Local firm)” is
original work of my own, has not been presented for a degree of any other university and all
the resources of materials used for the thesis have been duly acknowledged.

_________________________ ____________________
Bontu Hunde Date
(Candidate)

This is to certify that the above declaration made by the candidate is correct to the best of my
knowledge.
__________________________ ____________________
Dr. Alemayehu Shiferaw Date
(Thesis Advisor)

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Biographical Sketch

vi
Acknowledgements

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 Abbreviations and Acronyms

(ETIDI) Ethiopian textile development institute

(ETGAMA) Ethiopia textile garment manufacturing association
(FDI) Foreign direct Investment
(GTP) Growth and transformation plan
(MOI) Ministry of Industry
(QPC) Quality, productivity and competitiveness

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 Table of Contents

Abbreviations and Acronyms.....................................................................ii

Summary.....................................................................................................1
1. Introduction....................................................................................2
1.1. Background of the study..........................................................................2

1.2. Statement of the problem........................................................................3

2. Literature review............................................................................4
2.1. Theory of Productivity............................................................................4

2.2. Empirical literature..................................................................................5

3. Justification....................................................................................6
4. Significance of the study................................................................7
5. Scope of the study..........................................................................8
6. Objectives of the study..................................................................8
6.1. General objective.....................................................................................8

6.2. Specific objective....................................................................................8

7. Materials and methods...................................................................8

7.1. Research design.......................................................................................8

7.2. Population of the study............................................................................9

7.3. Sample size determination.......................................................................9

7.4. Sampling technique.................................................................................9

7.5. Data collection tools and methods.........................................................10

7.6. Data analysis methods...........................................................................10

8. Plan of activities...........................................................................11
9. Budget..........................................................................................12
References................................................................................................13

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 Lists of Tables

List of Figures (if any)

Summary
The development of the cotton, textile and garment industry is one of the priority sectors
of the economy. The cotton, textile and garment industry sector is labor intensive, it
contributes significantly to economic growth, creating jobs and generating significant
foreign exchange. However, one of the current problems in terms of competitiveness in our
country is the low productivity of the workers. It is true that capital alone is not enough for
industrial success. Undoubtedly, for the manufacturing industry, in addition to capital,
human resource development and capacity building are important. Human resource
development is directly related to changes in industrial development. Therefore, increasing
labor productivity is crucial to sustaining change and growth in industrial development.

The primary concern of this paper is to determine the factors that can affect labor
productivity of Ethiopian garment industries with a particular reference to local firms. For
the sake of achieving the objectives of this study, questionnaires were analyzed by using
SPSS package for statistical analysis such as descriptive analysis. The information was
collected from a sample of 32 companies by using different techniques. The first is
questionnaires, the questionnaires is prepared for the garment operators, production
managers and top managements. The other technique is structured and unstructured
interview for the garment operators, production managers, top managements and
Governmental organizations that support the sector. The last technique was document
review, annual and monthly reports were assessed and the necessary data was collected.

KEY WORDS: Garment Industry, Productivity, Labor, Determinant factors.

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 CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

Ethiopia is a country with a long history of manufacturing in the textile industry. Small-
scale cotton producers use traditional home-made cotton and home-made yarn, dresses,
skirts, etc. have been produced. This traditional garment production still creates jobs for
the rural community.

At the end of World War II in 1939, the first textile factory in Dire Dawa was established
by the Italian government. In the 1960s, 5 large integrated textile and garment factories
were established. Their spinning capacity was about 175,000 spindles.

Establishment of modern textile industries has met the demand for domestic clothing and
textiles, created jobs for many, and laid the foundation for the manufacturing sector in
Ethiopia. However, due to the neglect of the sector under the Derg regime and the fact that
the system did not encourage competition, factories also became less competitive in the
world market due to the lack of modern technology. Cotton, textile and garment
manufacturers have long been under-produced. Since the fall of the Derg in 1991,
government policy reforms have pushed the country out of command and into a free
market economy. As a result of this policy change, the sector is becoming more
competitive in the global market and its foreign exchange earnings are growing. One of the
reasons for the sector's rapid growth is the country's large population and low labor costs
are also one of the best opportunities. It also has enough manpower to compete with the
labor-intensive industry.

According to a World Bank study, Ethiopian workers' wages are low, but their
productivity is relatively low, as a result, the country's low wages opportunity eroded by
low productivity. According to World Bank Investment Climate Assessment, low wages
alone will not attract investment. It should be not only low but also high quality. One of
the reasons why Japan and China are so competitive in the world market is not only
because they have low wages, but also because they have a competent and productive

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workforce. (Austin G and Sughara, k eds 2010 labor intensive industrialization in global
history.)

The analysis was done with cross section data and the required statistical analysis is
carried by test various hypotheses regarding the factors affecting labor productivity. The
study aims to indicate the productivity gap in local garment industries by analyzing the
determinant factors that affect labor productivity in the sector. The paper organized
conceptual frame work and a brief review of related literature, overview of the domestic
garment industries in Ethiopia, result and conclusion. 32 garment industries was taken for
the purpose of this research.

1.2. Overview of Ethiopian garment sector

Ethiopia has a long history of textile manufacturing for the local market. In recent years,
the sector has undergone rapid growth; with a number of new players – often foreign-
owned textile and garment manufacturers – establishing production facilities with the aim
of supplying to foreign markets. This expansion has both internal and external reasons.
Changing conditions (such as increasing wages) in popular textile and apparel producing
countries such as China have led brands and retailers as well as manufacturers to seek
alternative sourcing locations with lower production costs. Ethiopia has emerged as an
interesting option having a large and cheap workforce. Ethiopia has no established official
minimum wage rate and thus wages in the garment and textile industry can be as low as
$23 per month. In an unpublished analysis of Ethiopia’s textile and garment industry,
which was drafted by Annie Francis for Mondiaal FNV, Francis provides a list of monthly
salaries that range between $26 to $60. Low labour costs are seen as Ethiopia’s most
attractive feature.

In an effort to diversify a dominantly agricultural economy, the Ethiopian government has

contributed to the growth of the textile and garment industry by prioritizing the industry as
a strategic sector. As a result, the government has set ambitious targets for the industry in
its Growth and Transformation Plan (2010-2015), which aimed to increase annual earnings
from $160 million in 2007 to $1 billion by 2016 and increase direct foreign investment by
$1.6 billion in order to build 191 new textile and garment factories. The goal is to increase
export from the current 20% of total garment and textile production to 80% of the total

3
garment and textile production by 2020, so that garment and textile exports will eventually
account for a total of 22% of all exports.

The Ethiopian government created several incentives to attract foreign companies and to
encourage Ethiopian exporter companies. Such are financial and non - financial incentives.

Financial Incentives

 100% Custom duties exemption for importation of capital goods, such as plant,
machinery and construction materials.
 Investors has the right to transfer a capital goods imported with exemption of
Custom duties to others party enjoying similar privilege.
 Reconciliation of VAT for materials purchased locally during the project period is
possible if it is declared in 6 months time.
 Strong government finance support /DBE, with 9 -12% interest rate depends on
export performance and reasonable grace period /
 Income Tax holiday for 2-10 years depending on the locations and export
performance.

Non- Financial Incentives

 100% Custom duties exemption on imported of raw material for export purpose.
 Import of machinery and equipment necessary for their investment projects
through supplier’s credit.
 Franco valuta imports of raw material are allowed for enterprises engaged in export
processing.
 Enterprises suffer losses at the period of income tax exemption has the right to
carry forward the loss for half of the tax exemption period after the expiration of
the exemption period.
 Up to 5 years Income Tax exemption for expatriates
 FDI has the right to take out of Ethiopia their profit remittance by converting into
foreign currency.
 Availability ‘plug & play’ shades in eco-friendly, well connected and full-fledged
government and private sector build industrial parks.
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 1.3. Incentives for Local garment

1.4. Defining and Measuring Labor Productivity

1.4.1. Productivity

Productivity is a fundamental concept in economic analysis. It is a key measurement of

economic effectiveness, revealing how well resources are combined and utilized to achieve
the desired and expected results. For countries, productivity is a tool for value creation
from available resources such as raw materials, labor, skills, capital equipment, land,
intellectual property, managerial capability and financial capital. If the right choices are
made, higher production, higher value and higher income can be achieved for every hour
worked. According to Krugman (1994), “productivity is almost everything in the long
run.” Productivity can be studied at three levels: international, national and enterprise.
Productivity at the international level reflects a view of competition among countries to
attain high technology, quality products, high-value services and low production costs. At
the national level, productivity uses the available resources to maximize overall yield,
increase employment and improve the living standard of the citizens. At the enterprise
level, productivity is associated with the optimal utilization of in-company resources,
aimed at superior business performance.

1.4.2. Labor productivity

Labor productivity is the value of goods and services produced in a period of time, divided
by the hours of labor used to produce them. Labor productivity measures output produced
per unit of labor, usually reported as output per hour worked or output per employed
person. Increases in labor productivity are driven by technological change, improvements
in efficiency, improvements in the quality of labor, and capital deepening (when more
capital is added to a given amount of labor). When the word productivity is used, it is
generally means labor productivity unless explicitly stated otherwise.

Increasing labor productivity is not only key to improving a firm’s competitiveness, it is

widely acknowledged as the key to improving national economic well-being. Increases in
labor productivity allow payments to workers—wages—to rise. With increasing
productivity and wages come rising living standards. Productivity enhancements in one

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industry also have spillover effects into other industries, as new domestic and foreign
investors are encouraged to invest in the local economy. The industrial sector diversifies,
creating new sources of growth. Misunderstanding the many dimensions of
competitiveness can lead to a misguided effort in labor-intensive, export-oriented
manufacturing to attempt to reduce costs simply by squeezing wages. Manufacturing costs
can also be lowered by increasing the productivity of the factory and its workforce. This
puts the burden on management to improve practices rather than on labor to accept deep
concessions. It also positions labor and management as allies, because strategies to
improve productivity translate into higher skills and ultimately higher wages for labor.

1.4.3. Measuring labor productivity

Most simply, productivity is the ratio between output and inputs. Within a factory, apparel
engineers or garment factory managers and line supervisors measure the number of
garments produced by a line of sewing machine operators in a specific time frame. Time
study (also called work study) analysis measures the number of minutes required to
produce a particular garment and compares that number to a benchmark. Another
productivity measure is labor efficiency, which is a comparison of the time spent working
productively to the total time spent at work. These metrics are appropriate for analyzing
and comparing the productivity of a particular production line or factory that turns out
specific apparel products. However, comparing productivity levels across products or
operating lines can be difficult because the benchmarks differ from one garment to
another. To compare productivity estimates across products, factories, or even industries,
economists define labor productivity as the production value added that each worker
generates. In this case, labor productivity equals the value of production divided by labor
input. The value of production is generally measured as value added, equal to the gross
value of sales minus the value of purchased inputs such as fabric, trim, and energy. Labor
input is measured by total work hours. Labor productivity can thus be estimated at the
national, aggregate level and for specific industries in an economy.

1.4.4. Determinants of labor productivity

Labor productivity is determined by a range of variables. Studies have identified several

sets of variables that determine labor productivity across industries and countries: human

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capital, capital utilization, innovation, firm characteristics and management, competition
and openness to trade, and industry environment.

This research asked for data on a broad range of these variables:

 Structural characteristics, such as the size of the factory, physical layout of the
workspace, workplace design, materials handling, and use of advanced technology
(e.g., computer-aided design, pattern-making, or manufacturing; automated fabric
spreading or cutting; information technology)
 Product characteristics, such as the complexity of product design
 Labor- and workforce development–related practices, such as wages, benefits,
workforce stability characteristics, operative skills and motion patterns, the
relative participation of Khmer and expatriate factory management and workers,
recruiting procedures that include aptitude testing, pre-employment and on-the-job
training, the percentage of work time lost to strikes and absenteeism, and the rate
of labor turnover
 Characteristics related to a firm’s position in the global value chain, such as a
firm’s product mix, the degree of concentration of its client base or export
markets, the duration of the manufacturing process, whether the factory is
accredited by external organizations, the extent to which the factory manages its
own sourcing
 Management variables, such as the allocation of personnel between direct
(manufacturing) and indirect (management) positions, and whether a firm
performs efficiency measurements or conducts benchmarking analysis.

1.5. Statement of the problem

Kineda in 2013 conducted a study comparing the overall productivity and technical
competence of workers in the manufacturing sector in Ethiopia with that of other
countries. Various sectors of this study were explored. (Leather and leather products,
textile and garment, agro-processing wood and wood products). Some of the Middle
Eastern countries studied: North Africa; Ethiopia ranks 20 th out of 22 countries in South
and East Asia and Sub-Saharan Africa.

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(2020 Policy Studies Institute; Ethiopia Productivity report) Ethiopia’s labor productivity
in garment sector relative to Myanmar, Vietnam, Cambodia, and Tanzania, Ethiopia’s
labor productivity was lower. In 2018, Myanmar, Vietnam, Cambodia, and Tanzania had
labor productivity of 3.4, 2.9, 1.7, and 1.6 times higher, respectively, than that of Ethiopia.

As a starting point for this study, the review of local garment factories and discussion with
owners was undertaken as a pilot check. In the review, the productivity of the workers and
the challenges they faced recognized as it needs attention to improve the productivity of
the sector. the manufacturers were raised the problems associated with labor productivity
decline; they said most of the problems are related to the fact that the government pays less
attention to local garment manufacturers compared to that of exporter companies and
foreign producers (FDI), which has had an indirect effect on the productivity of the
workers. The government has paid attention for foreign producers for the sake of transfer
technology, knowledge, management skills and to create a foreign market network, to
expand an industry culture, and to promote large quantities export, because they will
benefit from a variety of incentives. Ethiopian garment exporter and foreign producers
have better opportunities to use modern machines, import high quality inputs, and hire a
person who are highly skilled in the field. According to Ethiopia's industrial development
strategy, it is important for the government to create an enabling environment for both
domestic and foreign producers to accelerate the country's industrial development. The
study aims to identify and address the issues that reduce the productivity of the workers in
local garment industry.

1. LITERATURE REVIEW
1.1. Theoretical review

F.W Taylor, a scientist known as the Father of Science and Management, identified four
issues to increase productivity. These are
 Scientific replacement of common practices
 Train employees in a scientific way rather than training themselves
 Inform employees of job listing and monitoring process
 Distribute jobs to managers and employees using scientific management
techniques.

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Labor productivity theory is attributed to Adam smith, (1766) who emphasized the
indispensable role of the division of labor towards labor productivity. According to Smith,
the division of labor creates an enabling environment for workers to improve their
expertise, skills, innovativeness and as well as increase labor productivity. It makes more
efficient in producing goods and services. He added that the division of labor is useful
because it saves time, augments, and workers’ skills, enhancing workers’ expertise and
indeed encourages innovation.

The main determinants of labor productivity are physical capital, human capital and
technological change. These can also be viewed as key components of economic growth.

Physical capital can be thought of as the tools workers have to work with. It includes the
plant and equipment used by firms. Human capital is the accumulated knowledge from
education and experience, skills and expertise that the average worker in an economy
possesses. Typically the higher the average levels of education in an economy, the higher
the accumulated human capital and the higher the labor productivity. Human capital and
physical capital accumulation are similar. In both cases, investment now pays off in
longer-term productivity in the future. Another factor that determines labor productivity is
technology. Technological change is a combination of invention advances in knowledge
and innovation, which is putting that advance to use in a new product or service.
Technology can be used to measure product quality or do any other task in less time,
improving worker productivity.

1.2. Empirical literature

Nagler et al. (2004) made a comparison of labor productivity between rural and urban
enterprises. Their aim was to investigate the determinants of labor productivity in the
selected rural African enterprises (Ethiopia, Malawi, Tanzania, Uganda and Nigeria). The
outcome indicated that rural enterprises were less productive than urban enterprises. The
study also found that education, access to credit and age which is proxy to experience
increased labor productivity. Besides, enterprises located next to densely populated areas
were more productive than those far away. Firms which were subjected to shocks were less
productive than those that operated without and that firms owned by females workers were

9
less productive than those owned by their male counterparts. Firms located in areas which
exhibited a history of frequent conflicts were also less productive. These findings are in
line with the study done by papon et al., (2017).

Konings & vanormelingen, (2015) analyzed the impact of job training on wages and
productivity in Belgian manufacturing enterprises using panel data for a period 1996 -
2006. Their findings revealed that firms, which were able to train their workers, were
associated with greater labor productivity than an increase in wages. In this case, a 1% rise
in the number of trained workers led to an increase in effective inputs from 1.7% to 3.2%
ceteris paribus. Nevertheless, a 1% increase in training would increase wage just slightly
from 1% to 1.7% holding other factors constant. These outcomes are consistent with
results from similar research done by Dearden et al., (2006) in Britain who found that a 1%
unit increase in trained workers resulted to 0.6% increase in labor productivity and raised
wages by 0.3%.They concluded that training increases labor productivity more than it does
to wage due to imperfect competition from wages adjustments and the labor market.

Aslaninia et al. (2010) using descriptive analysis investigated the determinants of labor
productivity in the manufacturing sector in Iran. A sample of12,299 firms obtained from
Iranian census plan of industrial firms in 2007 was chosen and the OLS technique was
adopted to estimate the regression model. The results indicated that wage, fixed capital per
employee, education of labor force, R & D activities and export orientation were
significant and affected labor productivity positively. Nevertheless, training was found to
be significant but negative because of the firms’ inefficiencies in providing training. These
results confirm to the findings from a similar study by papadogonas & Voulgaris, (2005)
who found that R & D activity, export activities and capital-labor ratio were positive and
significant on labor productivity.

2. JUSTIFICATION

The garment sector is important for Ethiopia’s industrialization. The Ethiopian government
has long identified the textiles and garment sector as one of the priority industries. Various
support programs have been designed and implemented, including a recent ambitious plan
to build ten state-owned industrial parks exclusively for textiles and apparel production.

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The pursuit of quality, productivity and competitiveness (QPC) became Ethiopia’s key
policy direction in GTP II in which enhancing the productivity of agriculture and
manufacturing is one of the major focus areas. Ethiopia aims to become a light
manufacturing hub of Africa by 2025. To achieve this, the Ethiopian government has
prioritized the development of the manufacturing sector, in which productivity
improvement of the manufacturing sector should be a key policy pillar. Specifically, GTP
II targeted structural transformation involving the shifting of activities from low to high
productivity sectors, especially the manufacturing sector, in a relatively short period of
time. For the economic development of any country, productivity is an issue that must be
fully understood, addressed, and pursued. The reason why the researcher selected the
factories which have the capacity of more than 50 sewing machines is, the companies are a
medium level company, if they get the chance to improve their productivity they may inter
in to global market or export and this should be a great concern for Ethiopian policy
makers who aspire to make the country a light manufacturing hub in Africa by 2025.

Other studies related to this study conducted on the determinant factors of labor
productivity in garment manufacturing as a whole garment industry or as a single factory,
not focused on the size or the capacity of the firm. While this research focused on local
garment manufacturers which have the capacity of more than 50 sewing machines and
which produced and sell their product locally. Thus, this research explores the challenge
and contributes to the solution of the problem regarding to labor productivity.

3. SIGNIFICANCE OF THE STUDY

The Garment Industry is one of the key examples of the industrial globalization of this
modern era. It is a highly labour-intensive industry with lots of manual processes.
Satisfying the huge demand for garment products is mostly dependent on the production
and delivery performance of the employees in the garment manufacturing companies. So,
it is highly desirable among the decision makers in the garments industry to track, analyze
and know the productivity performance of the workers in the sector.

Garment industries have been the starting points for export led industrialization of many
countries. In Ethiopia this industry remains to be very important since it has a potential to
provide employment and boost economic growth.

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The significance of this study is to answer the following research questions at the end of
the study.

 What are the determinant factors of labor productivity in local garment

industries?
 What are the critical determinant factors of the sector?
 What are the techniques used to improve labor productivity of the
sector?

The research aims to identify the factors that determine the labor productivity and hinder
the industries competitiveness and to find improvement solutions, which could be taken as
guide to the garment industries. The research will have benefit to overcome the stated
productivity problems so that the sector can be competitive in the global market. It is
hopefully believed that the Ethiopian garment industries will implement the solutions and
have a remarkable improvement. The study pursues its policy significance through
availing the results of analyzed data, facts and information to the concerned body with
regard to the sector.

4. SCOPE OF THE STUDY

The study will be conducted to investigate, the factors that can determine the productivity
of the worker in Ethiopian local garment factories, the focus area of this research is
garment factories which have the capacity of more than 50 sewing machines and which
produced and sell their product locally. The factories which have above and below 50
sewing machines and exporter companies will not be included.

5. OBJECTIVES OF THE STUDY

5.1. General objective

The overall aim of the study is to improve the efficiency of labor

productivity through identifying the factors and indicate the way how the
sector overcomes the factors that affect labor productivity of the company.

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 5.2. Specific objectives

 To identify factors that determines the labor productivity of domestic

garment industries.
 To investigate the critical determinant factors of the sector
 To investigate the techniques used to improve labor productivity in the
garment industry.

6. MATERIALS AND METHODS

This research study will cover the local garment industries in Ethiopia and the primary
data will be collected from the selected samples from the factory population within a
month.

6.1. Research design

The research design addresses what objectives will be achieved; from where the data will
be collected and what types of tools will be used (Kothari 2004:31). To achieve the
objective of the study, the study design employed both qualitative and quantitative data. In
this research basically, primary data will be employed to gather first-hand information to
achieve the objectives of the research. Secondary data also used for gathering certain
secondary information in order to consolidate the first-hand information. These two
sources together will generate qualitative and quantitative data, which are used to explore
the essence of this research. In view of the fact that the overall objective of the paper is to
identify factors that determine the labor productivity of domestic garment industries in
Ethiopia and to find the way to overcome the factors affecting the labor productivity and
increase their competitiveness.

6.2. Population of the study

Data from Ethiopian Textile Industry Development Institute indicates that there are more
than 200 garment manufacturers in Ethiopia; the researcher has selected 32 of them as a
sample for the research based on the criteria having more than 50 sewing machines.

6.3. Sample size determination

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The target populations of this study are thirty two (32) factories which have the capacity of
more than 50 sewing machines and which produced and sell their product locally. The
study will be involved a population that includes; the stakeholders of industry such as
Ethiopian Textile Industry Development Institute (ETIDI), Ethiopian Textile and Garment
Manufacturing Association (ETGAMA) and Ministry of Industry (MoI), were selected
using purposive (judgmental) sampling techniques so as to get the information relevant to
the study.

6.4. Sampling technique

The researcher will use purposive (judgment) sampling method, because the target
populations are known, engaged on local garment production and trade, and their size will
be with the capacity having more than 50 garment stitching machines and it is convenient
to use proximity in data collection. Therefore, research methods and tools based on the
type or content of the study and the expected results will be used to gather primary and
secondary data for the study input. The areas to be studied are designed to identify issues
that may reduce the productivity of local garment workers in Ethiopia.

6.5. Data collection tools and methods

In this study two types of data collection technique will be used, the first is questionnaire;
different types of questionnaires will be developed and used. One is for garment operators;
the other is for production managers. The last is for factory management. All three queries
are closed and open ended. The other technique is interview, the questions included in the
interview will be used to review and verify the information gathered in the written
questionnaire. So the information will be collected through interview from garment
operators, production managers and top management of the selected factories as well as
stakeholder institutions such as Ethiopian Textile Industry Development Institute (ETIDI),
Ethiopian Textile and Garment Manufacturing Association (ETGAMA) and Ministry of
Industry (MoI) through oral inquiry.
Secondary data is the data or information which is already available in one form or
another. The sources of secondary data will be collected from books, journal articles,
quoted material, textbooks, online data sources such as web pages and researches,

14
 governmental organizations and catalogues from different sources mainly, (ETIDI),
(ETGAMA) and (MoI).

6.6. Data analysis methods

After the data collected from both primary and secondary sources through qualitative
method, the results obtained are analyzed and interpreted using qualitative data analysis
tools. Descriptive statics are used to analyze the frequencies of respondents’ perception
and their level of agreement or disagreement with the given statement under each licker
type questions as well as for the analysis of the secondary data.

7. PLAN OF ACTIVITIES
Time table
s/n Activities January February March April May June
1 Preparing Research Proposal 
2 Submission of Research Proposal 
3 Presenting to Advisor 
4 Make correction given by advisor 
5 Submission of corrected Proposal 
6 Identifying types of Questionnaires 
and Preparing
7 Presenting to advisor 
8 Make correction 
9 Distributing the questionnaire to the 
respondents

15
 Time table
s/n Activities January February March April May June
10 Collecting the questionnaire 
11 Start Writing thesis 
12 Analyzing and interpreting 
13 Presenting to advisor 
14 Make correction given by advisor 
15 Writing Conclusion 
16 Presenting to advisor 
17 Make correction given by advisor 
18 Writing Recommendation 
19 Presenting to advisor 
20 Make correction given by advisor 
21 Submission of Research paper 
22 Final Write-up 

8. BUDGET
s/n Item Budget Total budget
January February March April May June needed
1 Infrastructure
Internet 200 200 100 400 400 1300
Telecommunication 250 250 500
Transportation 2000 200
2 Consumable Materials
Photocopies 100 500 500 500 500 2100
Stationeries 500 1000 500 500 500 3000
3 Payment
Perdiume for labour 2000 2000 4000
4 Budget for other 5000

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costs/Contingencies
16100

References

Kurosawa, K. (1980). Structural approach to the concept and measurement of

productivity.KeizaiShushi 50(2), 96-135.
©2020 Policy Studies Institute; Ethiopia Productivity report
Patil M., (2013). Eight Important factors affect productivity. Retrieved from http: I Ikalyan
- city. blogspot.com / 2013 / 03/ factors - that - affec -productivity.html
Report-sourcing-textile-and-garments-in-ethiopa-bottom-up-dec2019.
Investment Opportunity in the Cotton, Textile and Garment Industry in Ethiopia)
Ethiopian Textile Industry Development Institute March, 2018.

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