Ethiopia’s Direction of External Trade Relations and Its Performances

Zewde Getahun


The aim of this article is to assess Ethiopia’s direction of external trade and its performances with different continents. Emphasis is given on exports import and trade balance to explain the problems and to show Ethiopia's dependence on international trade. The paper is based on the country’s trade statistics of 10 years (2005-2015) which used to analysis the total export-import and trade balance of Ethiopia. Material and Methods: In this study, the researcher used structured and semi-structured interview to analyze the direction of Ethiopia’s external trade relations and its performances with different continents.  The interview was made with people working at the Ethiopian ministry of trade, National bank of Ethiopia, Ethiopia foreign affairs and some scholars from field of International Relations. The finding of this study showed that Ethiopia’s external trade performance has been less than satisfactory and the country’s exports were less than that of its imports which was continuously resulted in negative trade balance or trade deficit. Ethiopia has chronically run a negative balance of payment, rendering the country highly dependent up on foreign aid and loans to finance imports. Even if currently the situation has shown little sign of improvements with some African states, continuously Ethiopia is in negative trade balance with different continents.

Keywords: Ethiopia, Direction of external trade, Trade performances

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DOI Prefix: 10.20286