DETERMINATE OF EXPORTPERFORMANCE IN ETHIOPIA
By:
INDASHEW S.
Advisor: Rediet. A.(MA)
A Senior Essay Submitted to the Department of Economics of ArsiUniversity in Partial Fulfillment of the Requirements for theBachelor of Arts Degree in Economics
ARSI UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF ECONOMICS
February, 2024 Asella, Ethiopia
Acronyms
CSA CENTRAL STATICS AUTHOURITYDCs Developed CountriesLDCs Less Developing CountryGDP Gross Domestic Product NBE National Bank of EthiopiaMEDaC Ministry of Economic Development and CooperationMoFED Ministry of Finance and Economic DevelopmentOLS Ordinary least square2
Table content
Acronyms...................................................…………..........................................l
CHAPTER ONE: - 1) Introduction
1.1 Background of the study………………………………………………….......................11.2 Statement of the problem ……………………………………………….......................61.3 Objective of the study …………………………………………………............................71.3.1General Objective……………………………………………………...............................71.3.2 Specific Objective…………………………………………………….. ...........................71.4 Research question …………………………………………………………..........................71.5 Significance of the study…………………………………………………........................81.6 Scope of the study………………………………………………………............................81.7 Organization of the paper………………………………………………….......................8
Chapter Two2) Literature Review
2.1 Definition of export……………………………………………………………......................92.2 Theory of trade.........……………………………………………………………….................92.2.1 Theory of international trade…………………………………………………..............92.2.2 Classical theory………………………………………………………………......................92.3 Empirical Literature…………………………………………………………….....................11
CHAPTER 33) RESEARCH METHODOLOGY
3.1 Data source and types.....................................................…….........…………163.2 Data Analysis methods..............................................…………....................163.3 Model specification......................................................…...…..................…17 3.4. Definition of variables and Hypothesis…………………………………............…...173.4.1 Dependent variable ................................................................................183
3.4.2 Independents variable .................................................... ......................193.5 Econometrics test .. ..................................................................................193 5.1 Stationary and Non-Stationary Series.................................................. 193.5.2 Unit Root test……..........................………………………………...………………………...193.5.3 Tests for Co integration……………………………………………....................………...20
CHAPTER 4TIME BUDGET AND COST BUGET
4.1Time budget ………………………………………..………………………….............................214.2 cost budget………………………………………………………………………...........................21
Reference.......................................................................................................22
CHAPTER ONE1) INTRODUCTON1.1 Background of the study
The Ethiopian economy had recorded a promising growth performance during theimperial regime, which was declined after the mid 1970s. In the Derge regime, theoverall economic performance was extremely low and real aggregate variables werereduced. Since 1992, Ethiopia has tried to adopt reform packages with the aim of reversing the deteriorating economic conditions and put the economy in a direction of sustainable growth. However, the economy remains weak and sensitive to shocks(KagnewWolde, 2007).Ethiopia did not succeed in increasing manufactured exports in which the major commodities are leather and leather products, meat, sugar and textiles (Ibid). Like other sub-Sahara Africa economies, the economy of Ethiopia is essentiallyagricultural based. But the sector that shows consistently high growth rate of valueadded is the service sector the convened service sector was the largest contributor toGDP, accounting for 45.1% in 2008 /09 overtaking the share of agriculture /43.2%/ for the fist time /NBE, 2008/09). The official estimate for Ethiopia's GDP was $312 billionat the end of 2023 in puchasing power partity terms.4