Post 1991 Ethio-china Economic Cooperation With Particular Reference To Trade And Road Construction

Economic cooperation plays a key role in promoting sustainable development and it isrnalso a major element of international cooperation. Based on this fact, the main objectivernof this study was to examine post 1991 Ethio-China economic cooperation withrnparticular reference to trade and road construction. The study used both quantitative andrnqualitative methodologies to assess the economic and political ties. Data were alsorncollected both from primary and secondary sources. The economic cooperation betweenrnthe two countries has shown improvement since the period under discussion. The majorrncontributing factors for this are, the change of economic policies in Ethiopia followingrnthe change in leadership, China’s growing economic and political interests in Ethiopiarnand in Africa at large, the strengthened ties between the two governments based onrncommon outlook of the ‘developmental state’, and the Chinese non-intervention policy.rnAfter critical analysis of trade data between Ethiopia and China, this paper empiricallyrnproved that Ethiopia incurs huge deficit in its trade with China in the period underrndecision. The result from cross sectional data sources, i.e. secondary sources, officialrnreports and interviews, reveal that Ethiopia’s export to China is much short of its importsrnfrom that country. Although trade figures show that there are improvements in therncountry’s export, still the trade balance is largely in favor of China. Dependence on thernexport of few primary products, weak export performance and geographic factors arernamong the reasons for the country’s trade deficit. This paper has also found that thernengagement of Chinese construction firms in Ethiopia is much greater than companiesrnfrom other countries. Currently about 70 percent of the construction in the country isrnbeing carried out by the Chinese enterprises. The low bid price these Chinese firms offer to carryout projects, the favorable environment for investment in Ethiopia, and thernrelative peace and stability in the country are attributed to the dominance of the Chinesernfirms

Get Full Work

Report copyright infringement or plagiarism