Export Instability and Economic Growth in Ethiopia
No Thumbnail Available
Date
2001-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The study tried to examine the relationship between export earning instability and
economic growth in Ethiopia using relatively long time series data; and assessed
the political economy factors worsening coffee sector performance and thereby
instability in the export earnings of the country.
Export earnings instability in many primary commodity producing LDCs has been
found to affect their economies adversely, the positive relationships found in
some cases, however, are criticized for their mis-specification of the equation to
be estimated and the technique used in constructing the instability index.
The instability in the export earning analyzed in this paper is found to have an
adverse effect on the growth of the economy in the short run. The long run effect
though happened to be adverse it is so insignificant to affect the economy. The
political economy assessment gave the vision that the external shocks and bad
domestic policies have resulted in lower farm gate prices thereby the production
and export of coffee than would have been if these influential policies weren't in
action.
Description
Keywords
and Economic Growth, Export Instability