The Role of Government in Promoting Export: Comparative case study of Ethiopia, South Korea and VietnamSubmitted by Anonymous (not verified) on Sat, 10/18/2014 - 08:47
Ethiopiamostly exports agricultural products such as coffee, Gold, leather products, and oilseeds and imports higher valued capital goods .The country runs a severe balance of trade deficit, because the return from exports is far less than the expense needed for the imports. This export and import unbalance leads the nation to the instable export and weak macroeconomic management due the depletion of foreign currency, eventually the nation is forced to look for additional finance to cost of its imports. Lack of own financial source has led the country to the development of a significantly sized externaldebt.. this paper tried to answer the main problems that why Ethiopia’s export is too weak in the past decades, to see how korea and Vietnam has become successful in boosting export, how is the link between private sector and government regarding financial credit, how much FDI is important in export growth as well as what can be done to improve the nation’s export performance. In this paper Herfindahl index, trend analysis and SWOT analysis models has been used for three country case.
After analyzing this paper there is finding that revealed the Ethiopian economy remains highly dependent upon coffee production; during 1995 to 2010, coffee accounted for an average of about 44 percent of the country's total valueof exports, both FDI inflow and the role of private sector in the export sector economy is too low compare to South Korea and Vietnam. To solvethose problems found in this paper , Ethiopia should promote export through encouraging FDI, by setting multi incentive and introducing EPZ, badly encouraging domestic private sector by supporting through financial instruments