The impact of trade liberalization on the ethiopias trade balance. Basically to achieve high economic growth developing economies are implementing free trade policies during the last few decades. Do free trade regimes and common currency drive export growth. My country, ethiopia, being one of the developing countries, has opened its borders for trade since 1992. Ethiopia, trade policy, liberalization, trade costs, facilitation jel codes. Exploring the relationship between trade liberalization and. Ethiopia trade and transformation enhanced integrated. The opinions expressed in this paper are his own and do. Ethiopia trade and investment priorities claudius preville. Objective of the study the general objective of the study is to explore the relationship between trade liberalization. According to the world bank 2001, trade liberalization is defined as i the removal of or reduction in the trade.
Indeed, trade liberalization was an integral part of the structural adjustment program that has been adopted by ethiopia in 1992. The impact of trade liberalization on the ethiopia s trade balance. Balance of trade in ethiopia averaged 2350 usd million from 2006 until 2019, reaching an all time high of 956. The country has undertaken serious trade reforms, either as a part of major macroeconomic reforms and commitments with international regulations, or by decisions driven by a process of internal adjustment for the last two decades. Duty free access to comesa members can significantly increase ethiopian exports. This study examines the impact of trade liberalization on the ethiopias trade balance using the data over the period 1974 to 2009 from nbe national bank of ethiopia. Greater efforts by industrial countries, and the international community more broadly, are called for to remove the trade barriers facing developing countries, particularly. The impact of trade liberalization on the ethiopias trade. Exploring the relationship between trade liberalization. Trade liberalisation over the last two decades in eastern africa has been.
Studying the poverty effects of trade liberalization in ethiopia is timely and relevant as the country. Impacts of trade liberalization on growth and poverty in. Two scenarios complete tariff cut and uniform tariff scheme. Ethiopian case and estimate the impact of trade liberalization on ethiopian economic. Economic growth nexus trade liberalization in ethiopia ijlret. Claudius preville is project director and senior trade economist for the european commissionfunded. This page provides ethiopia balance of trade actual values, historical data. The effect of trade liberalization on economic growth. Request pdf the impact of trade liberalization on the ethiopias. Impact of trade liberalization on poverty in ethiopia international. The impact of trade liberalization on ethiopian export.
In a free trade area trade restrictions between participating countries are. Using a cge model, this study analyses the impact of trade liberalization on poverty at the household level taking ethiopia as a case. Further liberalizationby both industrial and developing countrieswill be needed to realize trades potential as a driving force for economic growth and development. F, f14, f15 dan ciuriak is a consulting economist and former deputy chief economist at foreign affairs and international trade canada. Trade liberalization of economies via the reduction or complete elimination of trade barriers has become the most popular economic. Economic growth is the indirect channel through which free trade could contribute to poverty alleviation. Exploring the relationship between trade liberalization and ethiopian economic. Economic growth nexus trade liberalization in ethiopia. Kebede4 january, 2011 1 this research is financed by the aid of a grant from poverty and economic policy pep research network, financed by the international development research center idrc.
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