2.1. Real GDP growth averaged 11.2% per annum during the 2003/04 and 2008/09 period, placing Ethiopia among the top performing economies in Sub-Sahara Africa. This growth performance is well in excess of the population growth rate and the 7 percent rate required for attaining the MDG goal of halving poverty by 2015. Yet, a number of issues warrant the attention of policy makers. 22.2. Ethiopia’...

Firm Size, Economic Situation and Influence Activities This paper discusses the optimal firm size in the presence of influence activities, and the level of individual rent-seeking dependent on the economic situation of the firm. Since firm size has a discouraging effect on the level of individual rent-seeking but also a quantity effect as the number of rent-seekers increases, the interplay of b...