Assessment of Export Trends in Ethiopia
No Thumbnail Available
Date
2024-11-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A,U
Abstract
The assessment of export trends in Ethiopia based on export diversification and economic
growth is a different issue in the empirical literature. This paper, therefore, analyzed export
trends in Ethiopia using time series data from 2011—2023 based on purposive samples. The
National Bank of Ethiopia (NBE), the Ministry of Finance and Economic Development
(MOFED), the Central Statistics Authority (CSA) of Ethiopia and International Monitory Fund
(IMF), the United Nations Conference on Trade and Development (UNCTAD) were the data
sources. The research used both descriptive, comprehensive analysis and time-series data
analysis techniques. The trend analysis of export diversification and real GDP were separately
and jointly analysed in the descriptive parts. Looking at the result from descriptive analysis in
Ethiopia, The significant variables identified in the study were export diversification, GDP,
investment, trade openness of the country, human capital, inflation rate, exchange rate,
government spending, foreign direct investment and labour force growth. The findings reveal a
complex relationship marked by initial improvements in export diversification, peaking in 2017,
followed by a decline indicated by a decreasing export-to-GDP ratio and rising HerfindahlHirschman
Index (HHI). However, the study stresses that increasing the number of exported
products does not ensure enhanced economic performance. It identifies challenges such as
political instability and structural constraints alongside opportunities in agriculture, high-tech
investments, and regional trade agreements. To foster sustainable economic growth, the study
recommends establishing a stable political environment, developing a diverse portfolio of valueadded
exports, investing in high-tech sectors, engaging in regional trade agreements, and
enhancing the services sector. These recommendations hold significant promise for creating a
diversified export economy in Ethiopia, instilling hope for a prosperous future.