products, (7) textiles, (8) garments, and (9) leather and leather products, (10) coke, refined petroleum products, and (11) basic metals. In other industry: (12) electricity. In services: (13) land transport and transport by pipelines, and (14) water transport.

It is important to note in this context that agriculture in Uganda is a mixture of a traditional and subsistence component and a much smaller monetized /commercial segment. The attribute of comparative advantage is naturally limited to the second part –that is, to commercial farming and commercial fishing and not to the traditional‐ cum ‐subsistence part which in fact engages far more people than the commercial part. With that caveat, we will be analyzing issues of employment structure and productivity gaps between those 14 industries as comparative advantage industries and the rest of the traded sector as comparative disadvantage industries.<sup>13</sup>

# ==== Table 2 and Table 3 here===

According to UBR 2010, the 14 industries had a combined workforce of about 125, 000 engaged in 28,600 commercial farms and urban business enterprises, ranging in size from micro businesses of 1‐4 persons each to large establishments of more than a hundred employees each. The 125,000 employment total breaks down by major industry groups as follows (Table 3): 74,000 working in almost 20,000 craft shops and manufacturing enterprises; about 45,000 employed in some 8,000 commercial farms and fisheries and some 5,000 working in 640 transport businesses. Within manufacturing the main employers among the half dozen presumed comparative advantage industries were food and beverages and garments, which employed 47,000 and 20,000 people respectively. The leather and leather products and the basic metals industries were also significant employers in 2010. Even though they had a combined work force of less than 5,000 people at the time they were among the fastest growing industries in the sector.

That leaves out six of the 14 presumed comparative advantage industries, which are textiles, tobacco, electricity, extraction of crude petroleum and natural gas, and coke and refined petroleum products. None of these is as yet a major employer, certainly compared to any of the 8 just listed. In the case of two of these industries, namely, the crude oil and natural gas industry and the related industry of coke and refined petroleum products, the growth and job creation prospects of the industry are all too well known but are nonetheless hardly discernible from the two waves of the UBR. Neither of these industries was a significant employer per UBR 2010 even though 14 companies were registered then as operating in them. There is even less information in the UBR about the metal ore extraction industry, which in fact had significant exports, but this was an industry that has so far provided not as many

> 13 This divide is obviously limited to the traded sector of the economy, which consists essentially of commercial agriculture, mining and manufacturing and a sizeable and growing part of the service sector.  According to the latest DTIS total service imports were estimated to be $1.8 billion in 2010 while service exports were valued at half and had the following breakdown: 56% from travel/tourism, 25% from export of government services, and 15 % from    transport, communication and financial and other business services combined (Republic of Uganda 2013). We will nonetheless identify the service along with construction with non‐traded sector.

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