The Role of COMESA in Growth and Development of Ethiopia

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Addis Ababa University


Researches and different publications used to report that Africa in general and Ethiopia in particular has been registering economic growth in the past five to ten years. Most theories and literatures claim that growth comes either from trade through regional integration or sound macro-economic policies. The main reason to regional integration is to create and divert trade so that there will be considerable gains. Recently seen economic growth of Ethiopia has to be assessed by studying the case of COMESA (as a regional bloc) if it has any role in playing in this growth achievement. This study uses panel data analysis in all 19 member countries during 2003 – 2011 with static linear model regression over 171 observations. Crucial growth indicating variables are injected to the model. Different authors used different methodologies, like CGE and Gravity models to see the bilateral and multilateral effects of regional integration and conclude their findings. By this study the concern is to look into country specific policy and preference effects over the entire observation. So the role of COMESA to Ethiopia would be seen by the effects across variables and observations. Finally based on the analysis conclusions from general to specific scenarios has been derived and policy implications have been sited at the end.



Applied Trade Policy Analysis, Trade Policy Analysis