Performance Of Ethiopian Export Sector And Its Contribution To Economic Growth

Abstract

Despite encouraging improvements in recent decades, Ethiopia’s export performance has typically been portrayed as poor compared with other sub -Saharan African countries. The major objective of this paper is to investigate factors that determine the export performance of the country by using an econometric model. This study tried to review the export performance, trends and share of different export items and examine the long run and short run determinants of export performance of Ethiopia. The long run and short run estimates are investigated using Error Correction approaches. The data is collected from NBE, EEA statistical data base CD-ROM and WB. The findings of the study revealed that in the long run export performance has found to be influenced by real effective exchange rate, openness and RGDP of home country, Maintaining high and sustainable economic growth, and maintaining conducive and stable exchange rate policies as well as working to reduce trade restriction mechanism should due emphasis so as to improve Ethiopia’s export performance. Keywords: Ethiopia, Export Performance