Determinants of Export Performance of Ethiopia
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Date
2000-06
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A.A.U
Abstract
The foreign trade sector plays a major role in development endeavors of developing
countries, such as Ethiopia. In many instances, strength or weakness of an economy is
reflected in the peifonnance of its sub-sector. In view of this fa ct, this paper attempts to
examine the factors that determine the pelformance of the Ethiopian Export sector.
To analyze the determinants of export peiformance, a time series export determination
function as well as descriptive cross-sectional data analysis is put to use. It also focused on
the one-to-often considered side of demand bottlenecks and policy constraints.
A major finding of the study is that world demand is an important determinant of Ethiopian
export pelformance. It is also found that real exchange rate, relative price, domestic
demand pressure and non-price factors which referred as the learning process (e. g. quality,
diversification, packing, marketing ) significantly determine peiformance of exports.
Subject to the limitations of world market on small economy, there exist a number of policy
and institutional reforms that could have large pay-offs. Reducing dependency on few export
base and improving the supply of export quality which can achieve by simple policy
coordination. Restructuring the incentive framework, rigorous promotion, diversification
strategy should be the concern areas for policy makers.
Description
In partial fulfillment of the requirements
for master of science in the
Economic policy Analysis
Keywords
Determinants of Export Performance of Ethiopia