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The effect of trade liberalization on economic growth: The case of Ethiopia

Abstract

The relationship between Trade Liberalization and Economic Growth has received wide attention. Since 1992, Ethiopia had embarked on the most comprehensive financial and structural reforms. The purpose of this paper is to investigate empirically the relationship between trade liberalization and economic growth of Ethiopia using neo-classical growth model. Exports, industrialization, imports an agriculture have been included in the general growth model which has been used for deriving empirical results. The empirical results suggest the importance of outward looking strategies in promoting growth of Ethiopia. The empirical findings underscore the fact that trade variable play an ...

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