Ethiopian export, like many other developing countries, is limited to. few primary proudest thatrnare mainly agricultural. Studies show that such commodity concentration could res lilt inrninstability of export earnings which in turn will fleet growth and capital formation, since theserncountries highly depend on earnings from the export sector for' there imports of capital andrnconsumption goods. it is argued that volatility of such proceeds will significantly influence out putrnby cons twining input and production planning The classical approach to measure instability, â€¢rnand identify its causes was using a cross-country regression, which has its own limitation suchrnthe unrealistic inherent assumption of economic similarities of the countries in the sample as willrnas limited use when it comes to country specific policy decisions. the present study analyzesrnEthiopia's export earnings instability by employing minty specific time series models whichrnwill take advantage of the sufficiently large sample period, form 1992 to 2008 the studyrnidentifies the contributions of major agricultural export commodities, namely coffee. hides andrnskins, oilseed and fruits and vegetables. attempts have also been made to make comparisonsrnbetween the periods of the Imperial, Dreg and Post dreg periods as theses periods saw majorrnshifts in terms of trade policies. The study finds that the post-drag period is characterized byrnincrease both in the instability and diversification of exports. this calls for reconsiderationrnpolicy recommendations which subscribe diversification to trial instability