Decomposition analysis of economic growth in Afar region, Ethiopia

This paper is aimed to decompose, the economic growth of Afar national regional state Ethiopia in labor productivity, employment rate and working age population verify whether positive registered earlier on region was a job creation or not. To do so, annual time series data ranging from 2010 2018 were used per capita value added as measure decomposed by using Shapley decomposition analysis technique. The result reveals that changes output worker accounted highest proportion (74.33%) followed (32.85%) (−7.17%) for total change during entire period time. negative implied jobless growth. patterns does not favor agriculture sector where poor are found. within-sector takes lion share contributing (72.67%) aggregate structural (13.21%) interaction within sectors (14.11%). Finally, these findings navigated us suggest policymakers, amend their sector-wise policies strategies focused enhance generation productivity region.