Ethiopia has adopted different policy measures geared at promoting exports. As a result the real value of export has increased by more than 13 folds during 1980-2018 periods; however, its share in gross domestic product and import bills is being very small. Therefore, this article aimed to investigate the factors responsible for export performance over the period 1980-2018 by using the bound co-integration approach. In the long run, the regression analysis implies that real economic growth, inflation and the foreign demand are found to have a positive effect, whereas openness and the share of agriculture have a negative effect. Real economic growth, inflation and the foreign demand depressingly affect the export supply in the short run whereas openness affects positively but the share of agriculture was not found to be crucial. Thus, in order Ethiopia economy to improve its own export supply, focusing on industrial sector, ensuring and expanding vocational and technical education, trying to reduce marketing costs through the process by making transparent, and diversifying the destination are very crucial policy tools.
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The full text of this article is available to read as a PDF.
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Posted 03 Dec, 2020
Posted 03 Dec, 2020
Ethiopia has adopted different policy measures geared at promoting exports. As a result the real value of export has increased by more than 13 folds during 1980-2018 periods; however, its share in gross domestic product and import bills is being very small. Therefore, this article aimed to investigate the factors responsible for export performance over the period 1980-2018 by using the bound co-integration approach. In the long run, the regression analysis implies that real economic growth, inflation and the foreign demand are found to have a positive effect, whereas openness and the share of agriculture have a negative effect. Real economic growth, inflation and the foreign demand depressingly affect the export supply in the short run whereas openness affects positively but the share of agriculture was not found to be crucial. Thus, in order Ethiopia economy to improve its own export supply, focusing on industrial sector, ensuring and expanding vocational and technical education, trying to reduce marketing costs through the process by making transparent, and diversifying the destination are very crucial policy tools.
Figure 1
Figure 2

Figure 3
Figure 4
Figure 5
Figure 6
The full text of this article is available to read as a PDF.
Loading...