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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3501

Authors: Martha, Bisrat
Advisors: Dr. Adane Tuffa
Keywords: economics
Copyright: Jun-2011
Date Added: 27-Jul-2012
Publisher: AAU
Abstract: This study investigates the domestic production, import and demand of cement, steel products and aluminum products. It assesses the foreign exchange spent for these materials, their import share and whether or not import substitution exists. Finally it predicts the import and demand for the next ten years and gives recommendations. The major data source used for this study comes from Central Statistic Agency and Ethiopian Custom Authority. The study finds that the import share of all three categories of products is insignificant. Import substitution is only seen for steel products and almost all of the demand for cement and steel products of the country is fulfilled by domestic production, whereas all the demand of aluminum product is fulfilled using import. The foreign exchange spent for all three products is high, reaches 72 billion Dollars for the year 2001/02 Ethiopian Calendar. The conclusions drawn from this study is that, as almost all the demand for cement and steel are satisfied using domestic production, this will be advantageous for the country to shift, only with a little more extended effort, in exporting these materials. From other countries experience it is believed that import substitution with export promotion would result in successful development policy. The prediction shows that 121,406 billion Birr will be needed to import all three categories of products for the next ten years. Hence, it will be a great achievement to save this huge sum of money using import substitution.
Description: A Project Paper submitted to the School of Graduate Studies of Addis Ababa University in partial fulfillment of the requirements for the Degree of Master of Arts in Economics in the School of Economics (Applied Trade Policy Analysis)
URI: http://hdl.handle.net/123456789/3501
Appears in:Thesis - Economics

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