Liberalization In Ethiopia

In the case of Tunisia, the trade reform started in1987. Imports have been liberalized to promote the domestic production, to strengthen competition, and thereby to increase the economy's efficiency. This program continued in 1996; it was also extended to a number of agricultural products. With respect to trade co-operation, agreements have been signed or revived to stimulate trade, particularly with Morocco, Algeria and Egypt.

The liberalization of the telecommunications sector under WTO signatory commitments has played an important role in Tunisia’s economic development. At the same time, other factors, privatization in other sectors and macroeconomic stabilization resulting from the World Bank Structural Adjustment Loan Program, have also

The government decontrolled prices, privatized many state companies and abolished exchange rate controls. Also, Zambia’s market access obligations under the General Agreement on Trade in Services (GATS) include services related to mining and exploitation, professional services and tourism-related services.

2.5.2 Trade Liberalization in Ethiopia

Trade policies in Ethiopia Vary according to the regime which govern the country, where these trade policies were classified in two categories: policies pre-1991/92 and post 1991/92.

In respect to policies pre 1991/92, Imperial and Military regimes characterized by over valuation of exchange rate, high tariff rates, high export taxes, inclusive foreign exchange control and other non-tariff barriers with the objective of strongly inward oriented development strategy. (Hassen, 2008, p.28) according to the policies post 1991/92 which Ethiopia followed , Ethiopia has undertaken many free trade policies resulting from being the major macroeconomic reforms and commitments with international regulations, or by decisions driven by a process of internal adjustment. These policies include reduction of tariff and non-tariff barriers, harmonization and simplification of tariffs, removal of quotas, reduction and gradual elimination of all controls on domestic prices, and liberalization of investment

To determine the factors behind the performance of the economy, the theoretical and empirical tools could be categorized in domestic policies and domestic or external shocks such as domestic supply shocks, terms of trade shocks, international crises, etc.

Many Studies have examined the impact of trade liberalization on imports in Ethiopia such as; Hailegiorgis Biramo Allaro (2012) who examined the impact of trade liberalization on the Ethiopia's trade balance for period 1974-2009 and showed that trade liberalization led to too fast of an increase in imports resulting to deterioration of the trade balance.

Through the period 1960-2006, Sied Hassen (2008) examined the effect of trade liberalization on the trade balance through analyze the imports and exports.

This study emphasized that both imports and exports will increase but the effect of imports is greater than exports effect resulting in deficit of the balance of