Determinants Of Export Growth Rate In Ethiopia 1980-2010 Co Integration And Error Correction Model Analysis

The study aimed at identifying the major determinants of export growth rate which havernbeen a matter of argument in Ethiopia and Africa as a whole for a long period of time.rnThe paper empirically examined the export growth rate and its major factors in thernEthiopian context using time series data for the period 1980-2010 collected from ERCA,rnNBE, UNCT AD, and WEO by employing co integration and error correction modelrnwhich is previous used by Musinguzi et aI (2000) was adopted for this study.rnEstimation result of the model shows that the relationship between the foreign price level,rnand terms of trade with the export growth rate are positive and negative which arernstatistically significant respectively. The gross domestic product also positive andrnsignificant but it is not strong.rnSo the foreign price level, Terms of trade and gross domestic product appear to be majorrndeterminants, whereas the real exchange rate and FDI have no statistically significantrneffect on Ethiopia's export growth rate.rnTherefore to promote the export growth rate understanding and revising of the country'srnexport structure, situations and other policies related to the sector is necessary.

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