The foreign trade sector plays a major role in development endeavors of developingrncountries, such as Ethiopia. In many instances, strength or weakness of an economy isrnreflected in the peifonnance of its sub-sector. In view of this fa ct, this paper attempts tornexamine the factors that determine the pelformance of the Ethiopian Export sector.rnTo analyze the determinants of export peiformance, a time series export determinationrnfunction as well as descriptive cross-sectional data analysis is put to use. It also focused onrnthe one-to-often considered side of demand bottlenecks and policy constraints.rnA major finding of the study is that world demand is an important determinant of Ethiopianrnexport pelformance. It is also found that real exchange rate, relative price, domesticrndemand pressure and non-price factors which referred as the learning process (e. g. quality,rndiversification, packing, marketing ) significantly determine peiformance of exports.rnSubject to the limitations of world market on small economy, there exist a number of policyrnand institutional reforms that could have large pay-offs. Reducing dependency on few exportrnbase and improving the supply of export quality which can achieve by simple policyrncoordination. Restructuring the incentive framework, rigorous promotion, diversificationrnstrategy should be the concern areas for policy makers.