The purpose of the study is to analyze the relationship between Ethiopia'srneconomic growth (RGDP) and trade liberalization (OPEN), using the timernseries data during 1971/72-2003/04. In the estimation of the long run and thernshort run relationships among the variable s, the newly developed ARDL-ECMrnbound test procedure (pasaran, 2001) is employed. This approach is capable ofrntesting for the existence of a long run relationship regardless of whether thernunderlying time series are individually 1(0) or 1(1) or whether the underlyingrntime series are mutually 1(1) or 1(0). This enhanced the stability and robustnessrnof our results. Accordingly, the results indicate that there exist a long runrnrelationship between real GDP per capita and openness (trade/GDP). rnrnThe long run estimated coefficient suggests that the impact of trade liberalization onrneconomic growth has positive and significant but others variables real exchangernrates (RER) and lab our force (LF) are in significant impact on real GDP perrncapita. The short run error correction model also confirm that the existence ofrnthe co-integration relationship between economic growth and trade openness.rnFurther, the feedback coefficient indicate that a very high rate of adjustmentrntowards long run equilibrium. The CUSUM and CUSUMQ stability test alsornindicate that the estimated long run Coefficient remain stable over the periodrnof the study. Since trade liberalization is the long run process, from the studyrnwe suggest that in order to enhance growth the country should continue tornliberalize their trade.