The Impact Of Preferential Trade Agreements On Ethiopian Export

The purpose of this paper is to discuss and analyze the impact of Preferential TradernAgreements (PTA) on Ethiopia's export performance. A gravity trade model isrnemployed by using panel data for 31 main trading partners of Ethiopia covering thernperiod 2000-2010. The estimation result suggests that the export of the country is highlyrndependent on non-reciprocal preferential market access provisions granted byrndeveloped countries which could result in preference erosion when trade is furtherrnliberalized. The paper also assesses other determinants of the export sector. GDP andrnpopulation of Ethiopia are positively related to the counties export while thernpopulations of importing nations and COMESA dummy have negative impact on thernexport

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