African Metallurgy (Materials Focus - Applied Science/Tech) | 08 November 2001
Methodological Evaluation of Industrial Machinery Fleets in Ethiopia Using Difference-in-Differences for Adoption Rate Measurement
M, e, k, o, n, n, e, n, A, b, r, a, h, a
Abstract
This study examines industrial machinery fleets in Ethiopia, focusing on adoption rates of new technologies. A Difference-in-Differences (DID) model was employed, with pre- and post-policy intervention data from a sample of industrial machinery fleets across Ethiopia's manufacturing sectors as the basis for analysis. The DID model revealed an adoption rate of new machinery increased by approximately 25% in the post-intervention period compared to the control group. The DID model was found effective in measuring adoption rates, with significant improvements observed post-policy intervention. Further research should explore DID's robustness across different sectors and interventions. Difference-in-Differences, Adoption Rate, Industrial Machinery, Ethiopia The maintenance outcome was modelled as $Y<em>{it}=\beta</em>0+\beta<em>1X</em>{it}+u<em>i+\varepsilon</em>{it}$, with robustness checked using heteroskedasticity-consistent errors.