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Export In Ethiopia Essay

879 Words4 Pages

Statement of the problem
In any country, the world export sector play a crucial role in the economy: export trade makes developing countries to acquire goods that are not produce domestically. But their capacity to import mainly lies on the level of export earnings. Agriculture in Ethiopia is the foundation of the country’s economy. High incidence of poverty, low social service facilities ,unemployment, backward technology and low productivity, environmental degradation, poor infrastructure ,etc. are the characteristic features of Ethiopian economy . Agriculture takes the lion’s share of economic structure with other proportion of service and industrial sector. The percapita income of the country is one of the …show more content…

A simple indicator of the very limited value- added in Ethiopian export is still dominant share (roughly 80%) of agricultural export into total exports. In addition trends in three pairs of export commodities can reveal the relative sophistication of Ethiopia’s exports; whether the country is exporting more leather products (e.g. shoes) instead of hide skins more textiles/clothing instead of cotton. Reviewing trends in these three pairs of commodities shows progress in some areas but still limited overall structural change (access capital, Ethiopia’s export performance, 2010). Therefore, the country’s exports are highly concentrated in agricultural commodities while the share of nonagricultural products in total merchandise exports is almost insignificant. Concentration on few trading partners resulted in demand constraint for the nation’s primary exports and could be one reason for the poor performance of the sector and hence of the economy. So, this research proposal seeks to evaluate the effects of agricultural exports for economic growth in Ethiopia. To investigate the relationship between agricultural export and economic growth and also the contribution of agricultural exports to economic growth are issues that will be examining in this research

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