Supporters of openness, argues that trade liberalization increasesrnproductivity through increasing the access to advanced technologies inrnthe form of knowledge and capital. whereas opponents of free trade,rnargues that it reduces the total factor productivity of a country throughrnexposing domestic economy to stiff competition of foreign industries.rnto this effect this paper is intended to show the possible outcome of thernforeign trade reform measures of the current Ethiopian govemment tornthe country's total jactor productivity level using a time series datarncovering from 1971/72 to 2004/05.The cobb-douglas productionrnfunction, which explains output as a junction of labor, capital andrnproductivity is adopted. Moreover, war and weather are incorporated asrndummy variables in the estimable model of the paper.rnthe analysis makes use of Johansen maximum likelihood estimationrnprocedure. In this co integration analysis, two variables (Le. studentrnindex and exchange rate gap) with the exception of capital stock perrnlabor are found to be statistically significant each with a positive sign inrnexplaining the total jactor productivity of the country. Whereas, capitalrnshows insignificant and negative effect on the dependent variable. Thernresult of the paper support the current trade liberalization measures ofrnthe govemment because the reform measures have positively implyingrnthe total factor productivity of the country.rnthrough applying the vector error correction model (VECM), it has beenrnfound that capital per labor, human capital and weather are significantrnin explaining productivity per labor in the short run where as opennessrnand war are insignificant in explaining the dependent variable.