IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/29427.html
   My bibliography  Save this paper

Export Performance and Determinants in Ethiopia

Author

Listed:
  • Menji, Sisay

Abstract

In this study analysis of factors affecting export supply of Ethiopia, during the period 1981 – 2004, have been made using co integration analysis. Data trend reveals that Ethiopian export performance was highly volatile during the period, on average merchandise exports have been growing at 7% per annum, while manufacturing exports were growing at 4% per annum. The trend also reveals that Ethiopia’s export sector is mainly dominated by few primary commodities, where manufacturing exports account for less than 15% of merchandise exports on average. The two models estimated depict that merchandise export volumes are significantly influenced by gross capital formation (proxy for production capacity) and share of trade in GDP (proxy for trade liberalization) while other variables; terms of trade, real effective exchange rate, foreign income, and foreign direct investment were found to be insignificant. Manufacturing exports equation reveals an interesting result, manufacturing exports supply was found to be negatively & significantly affected by foreign income. Similar to merchandise export results, manufacturing exports were also found to be positively affected by gross capital formation. Terms of trade, real effective exchange rate, share of trade in GDP, and foreign direct investment were found to be insignificant. The study concludes with recommendations to increase share of manufactured exports and diversify export base of the country.

Suggested Citation

  • Menji, Sisay, 2010. "Export Performance and Determinants in Ethiopia," MPRA Paper 29427, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29427
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/29427/1/MPRA_paper_29427.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Freund, Caroline & Rocha, Nadia, 2010. "What Constrains Africas Exports?," CAGE Online Working Paper Series 16, Competitive Advantage in the Global Economy (CAGE).
    2. Balogun, Emmanuel Dele, 2007. "Exchange rate policy and export performance of WAMZ countries," MPRA Paper 6233, University Library of Munich, Germany.
    3. Marco Fugazza, 2004. "Export Performance And Its Determinants: Supply And Demand Constraints," UNCTAD Blue Series Papers 26, United Nations Conference on Trade and Development.
    4. Lawrence Edwards & Phil Alves, 2006. "South Africa'S Export Performance: Determinants Of Export Supply," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 473-500, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samwel J. Kabote & Jires Tunguhole, 2022. "Determinants of clove exports in Zanzibar: Implications for policy," WIDER Working Paper Series wp-2022-54, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    2. Alessandro Nicita & Valentina Rollo, 2013. "Tariff Preferences As A Determinant For Exports From Sub-Saharan Africa," UNCTAD Blue Series Papers 60, United Nations Conference on Trade and Development.
    3. Behar, Alberto & Edwards, Lawrence, 2011. "How integrated is SADC ? trends in intra-regional and extra-regional trade flows and policy," Policy Research Working Paper Series 5625, The World Bank.
    4. Lawrence Edwards & Neil Rankin, 2016. "Is Africa integrating? Evidence from product markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(2), pages 266-289, March.
    5. Murat Seker, 2017. "Trade Policies, Investment Climate, and Export Performance," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 31(2), pages 21-48.
    6. Tang, Yingkai & Zhang, Kevin H., 2016. "Absorptive capacity and benefits from FDI: Evidence from Chinese manufactured exports," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 423-429.
    7. United Nations ESCAP, 2011. "Trade Facilitation in Asia and the Pacific: An Analysis of Import and Export Processes, Studies in Trade and Investment 71," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2615, April.
    8. Sam LAIRD, 2007. "Aid for Trade: Cool Aid or Kool-Aid?," G-24 Discussion Papers 48, United Nations Conference on Trade and Development.
    9. Christian Nsiah & Chen Wu & Walter Mayer, 2012. "An analysis of US State’s export performance in the Asian Market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 533-550, October.
    10. Volpe Martincus, Christian & Carballo, Jerónimo & Graziano, Alejandro, 2015. "Customs," Journal of International Economics, Elsevier, vol. 96(1), pages 119-137.
    11. Mats Lundahl & Lennart Petersson, 2009. "Post-Apartheid South Africa: An Economic Success Story?," WIDER Working Paper Series RP2009-56, World Institute for Development Economic Research (UNU-WIDER).
    12. Pradhan, Jaya Prakash & Zohair, Mohammad, 2014. "Subnational Export Performance and Determinants: Evidence from Two Indian States," MPRA Paper 60029, University Library of Munich, Germany.
    13. Schuschny, Andrés R. & Durán Lima, José Elías & de Miguel, Carlos J., 2007. "Recent Chilean Trade Policy facing Asia: Assessment of the FTAs with China and Japan," Conference papers 331668, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Seker, Murat, 2011. "Trade Policies, Investment Climate,and Exports," MPRA Paper 29905, University Library of Munich, Germany.
    15. Laura COLLINSON & Jaime DE MELO, 2011. "Getting the best out of regional integration: Some thoughts for Rwanda," Working Papers P27, FERDI.
    16. Bhushan Praveen Jangam & Hari Venkatesh, 2022. "Global Value Chains and Exchange Rate Disconnect," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 347-359, December.
    17. Lawrence Edwards & Robert Lawrence, 2008. "South African trade policy matters Trade performance and trade policy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(4), pages 585-608, October.
    18. Joachim Wagner, 2006. "Export Intensity and Plant Characteristics: What Can We Learn from Quantile Regression?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 195-203, April.
    19. Francis Lwesya, 2018. "Determinants of Leather and Leather products Exports in Tanzania," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 133-140, March.
    20. Tony Addison, 2015. "Thirty years in Africa's development: From structural adjustment to structural transformation?," WIDER Working Paper Series 119, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Export Growth; Merchandise Exports; Manufacturing Exports; Error-Correction (Co-Integration) Method;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:29427. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.