An Analysis of the Relationship between Ethiopia' Foreign Trade and Gross Domestic Product

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Date

1982-06

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A.A.U

Abstract

The purpose of the study was to establish and analyze the relationship between Ethiopia's foreign trade (exports and imports) and Gross Domestic Product (GDP). A broader review of published sources was made on all aspects of the problem to be investigated. Based on a priori theoretical knowledge and the nature of the scatter diagram, linear regressions of GDP on exports and imports on GDP were formulated . Regression and correlation coefficients were computed and interpreted with allowances given to non-economic variables. The results showed that there is a strong association between GDP and exports, on the one hand, and imports and GDP , on the other. The relationships were then viewed with due considerations given to policy issues such as structural diversification and economic cooperation and integration.

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Keywords

The Relationship Between Ethiopia', Foreign Trade and Gross

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