Determinants of bilateral trade flow between Ethiopia and its major trading partners: A gravity model approach

IF 0.4 Q4 AGRICULTURAL ECONOMICS & POLICY

African Journal of Agricultural and Resource Economics-AFJARE Pub Date : 2022-12-31 DOI:10.53936/afjare.2022.17(4).24

Firomsa Mersha Tekalign, A. Mehare

引用次数: 0

Abstract

This study seeks to identify the internal and external factors determining Ethiopia’s bilateral exports and total trade flows. It uses panel data covering 21 major trading partners of Ethiopia from 2000 to 2017 and estimates an augmented fixed effects gravity model. The results reveal that domestic and foreign revenues increase Ethiopia’s bilateral exports, whereas the country’s foreign direct investment and the population size of the trading partners decrease bilateral exports. The results further show that both the domestic and foreign income and similarity endowment of Ethiopia increase the country’s total trade. The study provides recommendations for the effective implementation of supply side policies to enhance trade.

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埃塞俄比亚与其主要贸易伙伴之间双边贸易流量的决定因素：引力模型方法

本研究旨在确定决定埃塞俄比亚双边出口和贸易总额的内部和外部因素。该研究使用了2000年至2017年埃塞俄比亚21个主要贸易伙伴的面板数据，并估计了一个增强的固定效应重力模型。结果表明，国内外收入增加了埃塞俄比亚的双边出口，而该国的外国直接投资和贸易伙伴的人口规模减少了双边出口。结果进一步表明，埃塞俄比亚的国内外收入和相似性禀赋都增加了该国的贸易总额。该研究为有效实施供给侧政策以促进贸易提供了建议。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

African Journal of Agricultural and Resource Economics-AFJARE AGRICULTURAL ECONOMICS & POLICY-

CiteScore

1.20

自引率

16.70%

发文量

期刊介绍： The African Journal of Agricultural and Resource Economics (AfJARE)/Journal Africain d’Economie Agricole et des Ressources (JAEAR) is a publication of the African Association of Agricultural Economists (AAAE). The journal publishes original research about how African agriculture interacts with local and global economic systems and policy regimes in its impacts upon people. The scope of the journal covers the roles of markets, technology, policy, institutions and the natural environment in shaping the lives of well being of Africans engaged in agricultural activities. The journal strives to nurture and enhance the capacity of African professionals to conduct and publish scientific research and provides a venue for communicating and disseminating their findings. Multi-disciplinary, problem-oriented articles are encouraged. Submissions may deal with teaching, research extension, consulting, advising, entrepreneurship and administration. The Chief Editors and Editorial Board, under the general direction of the AAAE President, Executive Committee and Council are charged with implementing Journal policy to serve members of AAAE. The main section of the journal publishes technical research articles while a small section is devoted to publishing brief notes with important policy content and book reviews. The journal is a quarterly publication.