Browsing by Author "Estiphanos, Girma (Dr.)"

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    An Analysis of African Regional Trade Integratlon Using A Gravity Approach: The Case of Common Market for Eastern and Southern Africa (COMESA)
    (A.A.U, 2009-06) Hailu, Belete; Estiphanos, Girma (Dr.)
    Although Regional integration in Africa has a long history which dates back to the and of 19th century, it has failed to achieve its objectives, Several studies have pointed out different factors which contribute for its poor performance. These factors include loss of revenue due to trade liberalization non-complementarily of tradable goods, poor private sector participation, overlapping of memberships and so on. his study assessed and analyzed the problems and determinants Africa regional trade integration in general and COMESA in particular. however, it gives a due attention to determine the impact of trade openness ( trade liberalization) and overlapping of memberships on top of other determinants ( GDP, precipitate GDp, common boundaries, common language of member countries, distance between member countries etc.) on COMESA total trade flow using gravity model approach. The study comes up with the finding that trade openness (trade liberalization) within COMESA member countries boosts the intra-trade flow of the region. in contrast to this, overlapping of membership results in decline for the intra- trade flow of COMESA. Thus, the study recommends that COMESA member countries should liberalize their trade ,diversify the tradable commodities ,increase private sector participations and they should not to be a member of more than one regional group.
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    An Analysis of Foreign Direct Investment Pattern and its Implications in Ethiopia
    (A.A.U, 2001-07) Sugebo, Tagese; Estiphanos, Girma (Dr.)
    This study investigates the sect oral and geographical distribution of the approved foreign direct investment (FDI) in Ethiopia between 1992 - 2000. It is observed that, sect orally, FDI is mainly concentrated in consumer goods manufacturing and processing. Agriculture, real estates, construction, and hotels and tourism have also claimed substantial proportions of the approved FDI, in that order. Fishing, and mining and quarrying attracted the least amount of FDI. The relative shares of health and education were also low. The present Investment Code is argued to have a strong influence in causing this sect oral pattern as the Code maintains such entry restrictions as high minimum capital requirements and a list of several areas reserved for domestic investors. Regional considerations show that FDI is predominantly situated in Addis Ababa. The Oromia, Asmara and Afar regional states have also taken sizable proportions of the approved FDI. No foreign private company expressed its interests to invest in Benishangul-Gumuz and Somali regional states during the period under reference. The study argues that the regional distributions of FDI are largely determined by the level of economic development of the regions (in relative terms) such that the better the availability of infrastructural facilities the larger the flow of FDI, other things being constant.
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    The Effect of Export Earning Fluctuation on Physical Capital Formation in Ethiopia
    (A.A.U, 2009-06) Raga, Merera; Estiphanos, Girma (Dr.)
    Physical capital plays a key role in determining economic development in a country. Based on this fact, the main objective of this study was to investigate the effect of export earning fluctuation on physical capital formation in Ethiopia by employing data ranging from 1970171 to 2007/08 using time series technique. The study used unit root and co integration tests to see the characteri stics of the data seri es. In addition, Vector Error Correction Model (VECM) was developed to investi gate the effect of variation of the explanatory variables in the short run on physical capital formation. The finding of the study shows that expected level of output and aid affects the level of physical capital formation in the country for the period of study positively and significantly. Export income fluctuation and real effective exchange rate, on the other hand, affects physical capital formation negatively and signifi cantly. The rate of gross domestic saving has positive short run implication on the rate of phys ical capital formation as iJld icated in the ShOl1 run dynamics during the entire period of study.
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    Trade Effects of Regional Economic Integration in Africa using Disaggregated Data: The Case of Southern Africa Development Community (SADC)
    (A.A.U, 2009-05) Yayo, Mengesha; Estiphanos, Girma (Dr.)
    Empirical studies on regional economic integration process in Africa exhibit sluggish progress and there by limited level of intra trade. The existing literatures in Africa, particularly in Southern African regional integration bloc, SADC have neglected effects of regional economic integration dealing with disaggregated data. This study analyzes trade creation and diversion effects of the Southern Afi"ican Development Community (SADC) using disaggregated data from 2000 to 2007. The investigation estimates an augmented gravity model using panel data and random effect estimator methods applying instrumental variables where needed. The results show that the intra -SADC trade is growing in fuel and minerals, and heavy manufacturing sectors while it di!>plays a declining trend in agricultural and light manufacturing sectors. This implies that SA DC has displaced trade with the rest of the world in both fuel and minerals, and heavy manufacturing sectors. SADC has served to boost trade significantly among its members rather than with the rest of the world. Countries participating in SADC have moved toward a lower degree of relative openness in these sectors trade with the rest of the world. However, the increasing trend of extra-SA DC trade bias over the sample period in both agricultural commodities and light manufacturing sectors means that there has been a negative trade diversion effect. In other words, the value of trade between members and non-members has been increasing (and not falling as would be the case with trade diversion) for the two sectors. These results seem to suggest that SADC countries retained their openness and outward orientation despite they signed the trade protocolfor enhancing intra-SADC trade.