African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6848

Article in Press

Agricultural food export performance in Ethiopia: An error correction approach

Negussie Zeray

  •  Received: 11 October 2014
  •  Accepted: 28 January 2016
This study investigated the determinants of food export supply of Ethiopia for the period 1980-2011, for 32 years. In this study, policies under taken by the different regimes in relation to export policies were assessed in the short and long run operation. To test the relationship of food export supply and other variables there was implementation of co-integration and error correction approaches in the regression analysis. The finding of the study revealed that food export supply of Ethiopia is positively and significantly affected by openness of the country for international trade in the long run whereas the domestic national income and rural population had positively and significantly affect the food export supply of Ethiopia both in the short run and long run operation. On the other hand, world oil price affect export supply negatively and significantly in the long run and positively and significantly in the short run. Urban population affects the export supply significantly in the negative direction especially in the long run. Agricultural land is also one of the factors that affect export supply positively and significantly in the long run and negatively and significantly in the short run period of operation. However, overall investment and the domestic inflation are the other factor that affects the export supply negatively and significantly in consistent manner in both the long run and short run operation. Given all these, the adjustment period of the deviation from the normal trend is 29.38%, which is around 29 percent.

Keywords: Error Correction Model, Ethiopia, Export Performance, Food