The Impact of Preferential Trade Agreements on Ethiopian Export
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Date
2012-06
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A.A.U
Abstract
The purpose of this paper is to discuss and analyze the impact of Preferential Trade
Agreements (PTA) on Ethiopia's export performance. A gravity trade model is
employed by using panel data for 31 main trading partners of Ethiopia covering the
period 2000-2010. The estimation result suggests that the export of the country is highly
dependent on non-reciprocal preferential market access provisions granted by
developed countries which could result in preference erosion when trade is further
liberalized. The paper also assesses other determinants of the export sector. GDP and
population of Ethiopia are positively related to the counties export while the
populations of importing nations and COMESA dummy have negative impact on the
export
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Keywords
Agreements, Ethiopian Export, Preferential Trade