Gebeyehu Manie (PhD)Anwar Mohammed2025-06-162025-06-162022-08-22https://etd.aau.edu.et/handle/123456789/5580Ethiopia trade performance varies across regions substantially. The main objective of the study is to investigate the determinants of Ethiopia’s bilateral trade with selected African and Asian countries. Based on a gravity model, we used a Generalized Least Square (GLS) estimation technique over 10 years panel data (2011–2020) obtained from Ethiopia’s trade performance with twenty bilateral trade partners. The findings suggest that supply side condition such as domestic national income growth appear to be key determinants, while the institutional quality, internal infrastructure, real exchange rate and foreign direct investment have no statistically significant impact on Ethiopia's export performance with the countries of interest. Furthermore, rising domestic national wealth has a positive and significant impact on Ethiopian exports. The findings also suggest that foreign market access conditions such as the trade policy of a trading partner and Ethiopia's trading partners' national income play a key role in determining the volume of Ethiopian exports. And that distance, which is a proxy for transportation costs, has a negative impact on Ethiopian exports. In addition, the findings of this paper show that export to emerging economy has a positive and significant on Ethiopia export performance.enThesis