This paper examines domestic market structure and export performance in Ethiopian leatherrnindustry manufactures from the perspective of recent developments in international trade theory,rnwhile bringing the trends of concentration level in the sector in to the analysis. Studies on therndeterminants of export performance in Ethiopia manufacturing industries in general and leatherrnindustry in particular focused on the macroeconomic and controllable variables of the firms to thernperformance of the industries in international market. The microeconomic and uncontrollablerndeterminants of export performance have received negligible research attention. In this study, thernauthor examines one key uncontrollable/ external factor, namely, local industry concentration, inrnthe context of Ethiopian leather industry. In addition, the author conduct interview with EthiopianrnLeather Industries Association and Leather Industry Development Institute to capture otherrnfactors that constraint and influence the competitiveness of Ethiopian leather industry firms in thernglobal market.rnThis study evaluates the effect of leather industry domestic market structure on exportrnperformance using descriptive analysis for the period 1998-2009. Central Statistical Agency 2009rnstatistical survey report on 80 large and medium scale manufacturing firms selected for the studyrnand the market structure and the likelihood of competition assessed by using measures of sellerrnconcentration and then its correlation to export revenue examined.rnOn the basis of empirical analysis, the author finds that local market concentration is potentrnpredictor of Ethiopian leather industry firms' export revenue. The author discusses the implicationrnof the finding to expose the reason behind the success of Ethiopian leather and leather productsrnexporters in international markets.rnKeywords: ETHIOPIA; EXPORT REVENUE; LEATHER INDUSTRY; MARKET STRUCTURE