The objective of this study is to examine the determinants of therndemand for and supply of Ethiopian exports. It is conducted usingrntime series econometrics. The estimation technique used is thernStock Watson dynamic OLS (DOLS) approach. The variables usedrnas determinants of demand are: the real effective exchange rate,rnreal income of trading partners (Real GDP of Ethiopia's 4 majorrntrading partners) and dummy variable for openness (sincernEthiopia followed varying policy regimes). On the other hand, thernvariables used as determinants of export supply include: GrossrnDomestic Product, diversification, Dummy for government subsidyrnon Export (i.e., duty drawback and credit given to exporters) andrnthe ratio of price of exports to domestic price (i. e. px/ pd).rnThe estimated results indicated that real effective exchange raternand real income of trading partners have positive and significantrneffect; whereas openness has negative effect on the demand forrnEthiopia's exports. On the supply side, diversification, GrossrnDomestic Product, Export credit and Duty drawback scheme ofrnexportable products has positive and significant effects. However,rnrelative price (the ratio of price of exports to domestic prices) isrnnegatively related to the supply of exports suggesting that some ofrnthe commodities are diverted to the domestic market as theirrnprices increase. Policy measures taken have also contributedrnpositively to the development of the export sector. This can be seenrnfrom the positive effects of duty drawback and credit given tornexporters.