The study looked at how efficient and productive the manufacturing sector in Ethiopia has been from 1996 to 2009. They found that there were significant inefficiencies in the sector, with inefficiency accounting for 14% of output differences among firms. Total factor productivity improved after 2001, mainly due to technical changes in production methods. Efficiency changes were minimal, and most industrial groups had consistent efficiency levels over time. Scale effects, related to the size of operations, were generally small or non-existent.