The contribution of agricultural export to economic growth in Ethiopia: a case of sesame product

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Addis Ababa University


The study made use of time series annual data covering the period between 1988 and 2018. The main objective of this study is to investigate the relationship between agricultural export and economic growth in Ethiopia. The reviewed studies focused on the standard theoretical neoclassical growth model using based on a generalized Cobb Douglas production framework with some extensions. The stationarity, long run, and short dynamics between economic growth and agricultural exports sub-sector sesame export in Ethiopia were estimated through the employment of econometrics methodology proved and tests such as Unit root test (i.e. the data is stationery at first level both ; Augmented Dickey fuller test and Phillips-Peron tests ), Model Stability test(i.e. the study model was performed stability of the model) , Heterodosicity test (the study there is no heteroscedasticity problem ), Autocorrelation test(i.e. the study there is no problem of multicollinearity ) and Normality test(i.e. the study data were consistent with a normal distribution).The investigations on the relationship between agricultural export and growth in Ethiopia has provided a good understanding of the impact that agricultural export has on the growth of Ethiopia’s economy with particular reference to agricultural exports stimulates economic development. Also Sesame seeds, are the second largest source of foreign currency for Ethiopia's next to coffee, contributing significantly for the achievement of the country's high economic growth. the result of the study has found a positive relationship between sesame export and economic growth with strong statistical significance, showing that an increase in sesame export result in increased economic growth; also this study also approved the purpose of this thesis is to identify key bottlenecks in sesame value-chain and assess the magnitude and effects of key determinants of sesame exports. Moreover it recommends the Ethiopia government to establish effective agricultural export promotion policy to overcome all challenges accordingly and fuel the economic growth of the country. Finally, the study ends with some policy recommendations aiming at guiding effective strategy to improve the performance of the sesame export.


A thesis submitted to the college of business & economics of Addis Ababa university in partial fulfillment of the requirements for the degree of master in business administration in management


Agricultural export, Economic growth, Foreign currency, Sesame