Export Diversification and International Competitiveness of Ethiopia: A decadal Performance, Challenges and Opportunities
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Date
2024-06
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Addis Ababa University
Abstract
The research topic ‘Export Diversification and International Competitiveness of Ethiopia: A decadal Performance, Challenges and Opportunities’ is very pertinent and appropriate given its significant impact on the economic development of the nation. This study explores the competitiveness and diversification of Ethiopian exports, delving into performances, challenges and opportunities within the export sector. Informed by dewyan pragmatism a mixed approch has been applied. Data were collected both from primary and secondary sources. Data sources have been government and non government institutions that have relevant information pertinent to this study. Primary data were collected through questioneries, key informant interview and focus group discussions. Content analysis was used to analyze qualitative data; while Herfindahl-Hirschman Index and Relative Trade Balance were applied to assess export diversification and its competitiveness respectively. Accordingly, explanatory and descriptive methods of data analysis were applied. The study found that export trends over the study period reveals positive growth in total export values;however, performances vary across different merchandise categories. Efforts to diversify the export base have resulted in the introduction of new commodities but lack significant value addition and productivity enhancements. While the number of exportable items has grown, leading to a moderately diversified portfolio of exports and destinations, specific sectors differ in destination diversification. The findings also highlight significant opportunities for Ethiopia's exports contingent on the government's commitment to crucial institutional and policy reforms at the macroeconomic and industry levels. However, challenges arise due to heavy reliance on declining primary commodity prices, limited diversification, deficiencies in skilled labor, technology, and market access hindering progress. The study concludes that importance of stakeholder collaboration to enhance Ethiopia's export competitiveness through policy reforms, innovation, improved market access, and ethical business practices need to be emphsised.. By leveraging these strategies, Ethiopia can unlock its export potential, drive sustainable economic growth, and navigate the complexities of the global trade landscape effectively.
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Keywords
Export Performance, Export opportunities and challenges, Merchandize Export, Export Diversification, Export Competitiveness, Herfindahl-Hirschman Index (HHI), Relative Trade Balance, Ethiopia