July 11, 2022 Thesis Open Access

MOGES ALEMU

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    <subfield code="a">ABEBE FENTAW (Ph.D)</subfield>
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    <subfield code="a">EFFECT OF PREFERENTIAL TRADE  AGREEMENT ON ETHIOPIA'S EXPORT</subfield>
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    <subfield code="a">&lt;p&gt;ABSTRACT&lt;/p&gt;

&lt;p&gt;This research work intends to investigate the effect of preferential trade agreements on Ethiopians export. In addition the research tried to examine the potential impact of Ethiopians preferential trade agreements on the country&amp;quot;s total export earnings. The study can use panel data. For the purpose 31 trading partner of Ethiopia and a time span of sixteen years are selected. The time span covers from 205 to 2021G.C.the data to use in this research are secondary data extracted from different sources. The annual values (in USD million) of Ethiopian total exports to each of the 31 trading partners are mainly collected from, Ethiopia Revenue and Custom Authority, . The gross domestic product data are available from World Bank national accounts data and World Development Indicators. The data on population of each country is taken from International monetary fund world economic outlook database. The exchange rate data is obtained from NBE. Finally, data on distances between Ethiopia and her trading partners are collected using the CEPII online database (www.cepi.fr) and www.indo.com/distance.The empirical results show as the variable COMESA has a positive coefficient but statistically not significant, the existence of non-reciprocal PMA between Ethiopia and its trading partner is positive but insignificant, GDP of Ethiopia has affected the export negatively, Regarding the population of a partner, it has negative and significant effect on export of Ethiopia with high level of economies of scale effect for export commodity of Ethiopia, The negative coefficient of distance variable indicates that the distance between Ethiopia and its trading partners affects Ethiopian exports negatively. Here again, the coefficient of REER is negative as like other some research but it is not significant at all. So the country should focus on trainings and skills of the growing population that encourage the division of labor (economies of scale) and specialization. Ethiopia has to peruse to diversify export commodities from agriculture to other products. Our country should develop an adequate and cost saving infrastructure that connects Ethiopia with its trading partners. Ethiopia should cooperate with importing countries in the process of community service development activity that increase their income. Diversification of exports from primary to industrialized products and services shall be the main concern.&lt;/p&gt;</subfield>
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