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    Determinants of Ethiopian Trade Performance to Its Bordering Region: A Gravity Model Approach

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    International trade has increasingly become a keystone of economic prosperity in many countries of the world. Ethiopia is the one which benefits from foreign trade. Therefore, the main focus of this paper is to identify factors influencing Ethiopian trade performance within the bordering countries such as Djibouti, Kenya and Sudan. The gravity model of trade was employed for the purpose. A gravity model based on a panel data for the period of 19 years (1991-2009) of sample countries was estimated by random effect estimators. The coefficients obtained are then used to predict the basic total trade and export trade potentials for Ethiopia. As a result, we found that the total trade flow was determined by Ethiopia per capital GDP, the product of the GDP of Ethiopia and its trading partners, weighted distance between Ethiopia and the bordering region and Per capita GDP differential. Ethiopia total exports trade to the bordering region is also affected by the GDP of the trading partners, per capita GDP of the exporting country and real bilateral exchange rate. The results of this study indicate that a depreciation of the real exchange rate would affect the international competitiveness of Ethiopian exports, therefore, we recommend Depreciation of a country's real exchange rate because it will cause a gain in competitiveness of that country and government needs also to pay adequate attention to destination markets with cheaper transport costs. Keywords: Gravity Model, Ethiopia Border Trade

    Economic Impact of Biofuel Investment in Ethiopia: A Review

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    Ethiopia is a developing nation which depends entirely on the import of fuels from the oil producing countries. This import of fuel constitutes about 60% of the total imports with every single year. As in the rest of the world, the rise of oil prices is increasingly becoming a big challenge for the economy of the country. The share of fuel in import currency has been increase steadily in recent years, and it is expected to grow even sharper following higher demand due to economic growth. This takes up the lion share of the country’s foreign exchange earnings. In recent years attempts have been made by the Government of Ethiopia to facilitate policies that encourage the reduction of petroleum consumption by shifting to biofuels. Biofuels are seeing large-scale production worldwide in recent years. The IEA (2004) projections that annual global production of ethanol will increase to 120 billion liters by 2020, more than two folds from the 50 billion liters produced in 2005 (Banse et al., 2007). Production of biodiesel is expected to increase to 12 billion liters from its level of 1.8 billion liters in 2004(IEA, 2004).Many countries have high targets of expanding biofuels. The EU, for example, aims to blend 10% of its transport fuel consumption by biofuels as of 2020 while India plans to meet 20% by 2017 and Brazil is planning to expand its biofuel exports. Ethiopia has entered in to a 10% blend of bio-ethanol. There are various underlying reasons for the big attention biofuels are enjoying today. Biofuels are claimed to provide a “triple solution” to the problems of poverty, climate change and energy security. Biofuels have arguably low greenhouse gas emissions which make them preferable over other polluting petroleum fuels. They also provide high economic gains by offering an alternative to fossil fuels whose prices are rising rapidly, while, in the production side, enabling rural job creation. Besides, relying on biofuels enhances energy security, reduces oil imports and improves domestic supply (Addisu, 2008). Addisu (2008) argues that rising oil prices, increasing global energy demand and technological improvements are expected to further facilitate biofuel production by improving the commercial feasibility of producing and transporting biofuels around the world. The advent of bioengineering and other technologies is expected to make the future prospect of biofuels even more promising. On the other hand, there is skepticism with concerns that biofuels will open a ‘Pandora’s box’ of environmental, social and economic problems (Mayat, 2007). It is argued that the sustainability of biofuel production and the socio-economic impacts of expanded biofuel production are not definitely known. Such literature reviewed is important to have an understanding about the impact of bio-fuel investment in Ethiopian condition

    Climate Change Impact, Vulnerability and Adaptation Strategy in Ethiopia: A Review

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    Review of long-term climate data for Ethiopia shows increasing rainfall for some regions and decreasing rainfall for others with temperature rising for all regions (Energy Group of ECSNCC Network, 2011). Global circulation models predict a 1.7-2.1ºC rise in Ethiopia's mean temperature by 2050 (EPA, 2012). Average annual temperatures nationwide are expected to rise 3.1°C by 2060, and 5.1°C by 2090 (Kidanu et al., 2009). In addition, precipitation is projected to decrease from an annual average of 2.04 mm/day (1961-1990) to 1.97 mm/day (2070-2099), for a cumulative decline in rainfall by 25.5 mm/year (Kidanu et al., 2009). This could cause food insecurity, outbreak of diseases such as malaria, dengue fever, cholera and dysentery, malnutrition, land degradation and damage to infrastructure (Kidanu et al., 2009; Adem and Bewket, 2011; Adem and Guta, 20011; Oates et al., 2011; EPA, 2012).   The current development plan, GTP, envisages the country’s GDP per capita to grow from 378 USD in 2010 to 1271 USD in 2025. It also projects that the contribution of agriculture will diminish from 42% to 29% indicating migration of jobs from the agriculture sector to industry and services, which are expected to contribute 32% and 39% of the GDP (FDRE, CRGE, 2011). The GTP explicitly recognizes that environment is a vital and important pillar of sustainable development, and states that “building a ‘Green Economy’ and ongoing implementation of environmental laws are among the key strategic directions to be pursued during the plan period” (MoFED, 2010; EPA, 2012). To protect its citizens from such devastating catastrophe and to attain its vision of becoming a middle income country by 2025, the government of Ethiopia has adopted a climate resilient green economy strategy to keep its development objectives on track in the context of a changing climate

    Climate Change Impact, Vulnerability and Adaptation Strategy in Ethiopia: A Review

    Get PDF
    Review of long-term climate data for Ethiopia shows increasing rainfall for some regions and decreasing rainfall for others with temperature rising for all regions (Energy Group of ECSNCC Network, 2011). Global circulation models predict a 1.7-2.1ºC rise in Ethiopia's mean temperature by 2050 (EPA, 2012). Average annual temperatures nationwide are expected to rise 3.1°C by 2060, and 5.1°C by 2090 (Kidanu et al., 2009). In addition, precipitation is projected to decrease from an annual average of 2.04 mm/day (1961-1990) to 1.97 mm/day (2070-2099), for a cumulative decline in rainfall by 25.5 mm/year (Kidanu et al., 2009). This could cause food insecurity, outbreak of diseases such as malaria, dengue fever, cholera and dysentery, malnutrition, land degradation and damage to infrastructure (Kidanu et al., 2009; Adem and Bewket, 2011; Adem and Guta, 20011; Oates et al., 2011; EPA, 2012). The current development plan, GTP, envisages the country’s GDP per capita to grow from 378 USD in 2010 to 1271 USD in 2025. It also projects that the contribution of agriculture will diminish from 42% to 29% indicating migration of jobs from the agriculture sector to industry and services, which are expected to contribute 32% and 39% of the GDP (FDRE, CRGE, 2011). The GTP explicitly recognizes that environment is a vital and important pillar of sustainable development, and states that “building a ‘Green Economy’ and ongoing implementation of environmental laws are among the key strategic directions to be pursued during the plan period” (MoFED, 2010; EPA, 2012). To protect its citizens from such devastating catastrophe and to attain its vision of becoming a middle income country by 2025, the government of Ethiopia has adopted a climate resilient green economy strategy to keep its development objectives on track in the context of a changing climate. Adem and Bewket (2011) contend that addressing current and future climate vulnerabilities in development planning and programming through mainstreaming of climate change adaptation should be an immediate priority for Ethiopia. Being prepared to adapt to climate change is important, even as the world strives to reduce the factors that cause it (Adem and Bewket, 2011). Kidanu et al. (2009) claim that including voluntary reproductive health and family planning as a core component of integrated community approaches and strengthening the country’s national family planning program will increase the effectiveness of climate change adaptation efforts in Ethiopia. According to Adem and Bewket (2011), development as usual, without consideration of climate risks and opportunities, will lead to maladaptive practices weakening national resilience to climate change in Ethiopia. In a nut-shell, Ethiopia’s endeavours to respond to the impacts of climate change through adaptation and mitigation policy frameworks are highly appreciable (Adem and Bewket, 2011). Nevertheless, the practical implementation of these policy frameworks is impaired by different challenges. Therefore the main focus of this paper is to show climate change impacts, vulnerability and adaptation strategy in Ethiopia

    Determinants of Bilateral Trade between Ethiopia and Its Major Trading Partners’: A Gravity Model Approach

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    International trade has increasingly become a keystone of economic prosperity in many countries of the world. Ethiopia is the one which benefit from foreign trade. Therefore, the main focus of this paper is to identify factors influencing bilateral trade between Ethiopia and its major trading partners’. The gravity model of trade was employ for the purpose. A gravity model based on a panel data for the period of 10 years (2000-2009) of sample countries was estimated by fixed effect estimators. The coefficients obtained are then used to predict the basic total trade and export trade potentials for Ethiopia. As a result, we found that the total trade flow was determine by mass (economic size) of the importing and exporting countries, real bilateral exchange rate, FDI of Ethiopia, weighted distance and bordering between Ethiopia and the major trading parents. Ethiopia's export performance to those major trading countries’ are also determine by GDP of the importing countries, GDP of the exporting country, the weighted distance. The results of this study indicate that a depreciation of the real exchange rate would affect the international competitiveness of Ethiopian exports, therefore, we recommends Depreciation of a country's real exchange rate because it will cause a gain in competitiveness of that country and government needs also to pay adequate attention to destination markets with cheaper transport costs. Keywords: Trade Flows, Gravity Model, Ethiopia

    Determinants of participation and earnings in the rural nonfarm economy in Eastern Ethiopia

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    This paper investigated the push and pull factors that influence the participation decision of rural households in non-farm activities (RNFA) and the income earned from this sector. Multinomial logistic regression was applied to estimate the likelihood of participation in RNFA and a censored income determinant function (tobit) was estimated to understand factors influencing nonfarm income share in the study area. Results show that only 21% of the total household income was derived from different nonfarm activities with activity rate of 46%. In disaggregated functional categories, 21% and 24.6% of the total sampled households participated in wage employment and self-employment, respectively. However, income from each activity accounted for only 10.3% and 11% of total income. The multinomial logit analysis showed that the likelihood of earning income from non-farm economic activities was significantly influenced by capacity variables such as wealth and human capital. Having better education, land holding, access to irrigation and number of adult members positively influenced the likelihood of involvement in non-farm activities. The result was associated with access to irrigation and implies that households with better economic condition are pulled to the non-farm sector attracted by the better return from the non-agricultural sector. Female-headed households were found more likely to participate in own business than male-headed ones. Estimation of the tobit model revealed that having access to credit, better land size, livestock and number of adults in the household significantly and positively influenced the share of income from rural non-farm employment (RNFE). It was also found that age and sex (male) of household head had positive effect on the share of income from RNFE. The findings of the study suggest that efforts should focus on the promotion of nonfarm opportunities that do not impose barriers to entry through provision of physical infrastructure such as road, improving credit provision, improving educational status and improving irrigation water accessibility. These efforts can be expected not only to directly raise the income levels of the disadvantaged but also to reduce inequality by raising wages received by those who remain employed as non-agricultural laborers

    Nonfarm Income Diversification and Inequality in Eastern Ethiopia: Evidence from Gini Decomposition Analysis

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    This study attempts to analyze the equity effect of the income earned from non-farm income diversification in rural Ethiopia. The data for this study was obtained from household survey conducted in the rural areas of Harari regional state in June 2011.  Gini decomposition technique was used to analyze income inequality effect of RNF activities. Results show that only 21% of the total household income was derived from different nonfarm activities with activity rate of 46%. In disaggregated functional categories, 21% and 24.6% of the total sampled households participated in wage employment and self-employment nonagricultural economic activities respectively. While wage employment contributed 10.3%, self-employment activity accounted for only 11% of total income. The Gini decomposition analysis revealed the income inequality index of the study region is 0.31. Farm income as a whole accounted for 82%, while nonfarm income accounted for 19% of total inequality in the region. The research also showed that while non-farm income was inequality-decreasing, farm income was inequality-increasing in the study area It is also learned that, despite the fact non-farm income and livestock earnings are distributed more unequally than the other sources of income (as reflected in its higher Gini coefficient), its contribution to overall income inequality is the smallest (17% and and 8% respectively). This is probably because non-farm income comprises the smallest share in total rural income among the respondents, and the Gini correlation of non-farm income with total income rankings is lower than that for the other income sources Keywords: Income diversification; income inequality; Gini coefficien

    Going Beyond Counting First Authors in Author Co-citation Analysis

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    The present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed

    Variations on the Author

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    “Variations on the Author” discusses two of Eduardo Coutinho’s recent films (Um Dia na Vida, from 2010, and Últimas Conversas, posthumously released in 2015) and their contribution to the general question of documentary authorship. The director’s filmography is characterized by a consistent yet self-effacing form of authorial self-inscription: Coutinho often features as an interviewer that rather than express opinions propels discourses; an interviewer that is good at listening. This mode of self-inscription characterizes him as an author who is not expressive but who is nonetheless markedly present on the screen. In Um Dia na Vida, however, Coutinho is completely absent form the image, while Últimas Conversas, on the contrary, includes a confessional prologue that moves the director from the margins to the center of his films. This article examines the ways in which these works stand out in the filmography of a director who offers new insights into the notion of cinematic authorship
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