? Before liberalization, more attention was given to public sector capital formation. Share of public sector investment before liberalization was very high unlike in the post liberalization period. Thus, liberalization has a significant impact in investment of Ethiopian cotton textile industry and the impact is noted exhibiting increasing trend after liberalization. Because of the facts discussed so far, it can be concluded that the impact of liberalization on employment, motivation and productivity is significantly high resulting in economic development in the industry.

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