Determinants Of Agricultural Export In Ethiopia

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This paper identified some of the main determinants of agricultural export in Ethiopia forrnthe period 1980-2010. To test empirically the relationship between agricultural exportrnperformance and its major selected determinants such as terms of trade, gross domesticrnproduct, domestic price, world price, kilometers paved roads and fertilizer input importrnover a period; cointegration and error correction approaches in the regression analysisrnwere used.rnThe results from the cointegration and error correction models revealed that all the abovernlisted explanatory variables significantly affected agricultural export performance in thernlong run except domestic price. In the short run, gross domestic product (GDP) becamerninsignificant and negative in sign which was unexpected. Domestic price was alsorninsignificant like in the case of long run. However, except these two variables otherrnvariables were found to significantly affect the agricultural export performance of therncountry. On the other hand, out of the variables significantly affected agricultural exportrnboth in the long run and short run; terms of trade, world price, fertilizer input import overrna period and kilometers of paved roads affected agricultural export positively asrnexpected. Especially when we look at the magnitude by which kilometers of paved roadrnaffected the dependent variable both in the long run and in the short run positively andrnsignificantly, it can be regarded as one of the key finding in this study.

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Determinants Of Agricultural Export In Ethiopia

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