Determinants of Export Performance of Ethiopia: A Gravity Model Analysis
| dc.contributor.advisor | Geda, Alemayehu (Dr) | |
| dc.contributor.author | Tekaligne, Yishak | |
| dc.date.accessioned | 2021-07-18T10:58:45Z | |
| dc.date.accessioned | 2023-11-04T10:29:56Z | |
| dc.date.available | 2021-07-18T10:58:45Z | |
| dc.date.available | 2023-11-04T10:29:56Z | |
| dc.date.issued | 2009-06 | |
| dc.description.abstract | The purpose of this paper is to identify and empirically analyze determinants of export performance of Ethiopia. We began with a novel decomposition of the growth in countries' exports into the contribution from internal supply-side and external market access conditions. Building on the results of this decomposition, we moved on to an econometric analysis of the determinants of export performance. We employed a gravity model with a panel data using 30 Ethiopia's trading partners for the period 1995- 2007. Our model has been estimated with Generalized Two Stages Least squares (G2SLS) estimation. Endogeneity of FDI and GDP to export, heterosckedasticity, and serial correlation for AR (1) are controlled. The estimated result suggests that internal supply side conditions are one of the major factors for export performance of Ethiopia . The result shows that good institutional quality and internal transport infrastructure appear to be major determinants; whereas real exchange rate and FDI have no statistically significant effect on export performance of Ethiopia. Furthermore, the growth of domestic national income affects Ethiopian exports positively. According to the estimated result, foreign market access conditions also playa significant role. The result indicates that import barriers imposed by Ethiopia's trading partners do play an important role in determining the volume of Ethiopian exports. Moreover, export performance is positively related to Ethiopia's trading partners ' income and distance, which is a proxy for transport costs, affects Ethiopian exports negatively. Key words and phrases: Ethiopia; Export; supply side factors; external market access condition; Gravity model | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27229 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Ethiopia; Export | en_US |
| dc.subject | Supply Side Factors | en_US |
| dc.title | Determinants of Export Performance of Ethiopia: A Gravity Model Analysis | en_US |
| dc.type | Thesis | en_US |