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THE EFFECTS OF FOREIGN DIRECT INVESTMENT INFLOWS ON EXPORT PERFORMANCE IN ETHIOPIA

초록/요약

The study aimed at identifying the effect of FDI inflows to export performance in Ethiopia. Engle-Granger two step procedures are used to find the relationship using time series data for over the period1981 to 2014. The results show that FDI inflows do play significant positive role on export performance in the short run as well as in the long-run. Therefore, FDI inflows contribute to improve export growth both in the short run and in the long-run. In addition, world income has significant positive effect on export performance in the long-run whereas real effective exchange rate has no effect on export. To further augment export performance through inward FDI, the government of Ethiopia needs to improve its ability to attract foreign direct investment via improvements in the quality of institutions, investment incentives, skilled manpower. Besides, efforts should be devoted to the strengthening towards the integration of the local industries and the export sectors. Key Words: FDI inflows, Export performance, Engle-Granger two step procedures.

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목차

CHAPTER I 1
Introduction 1
1.1 Background 1
1.2 Statement of the study 1
1.3 Purpose of the study 2
1.4 Significance of the study 2
1.5 Scopes of the study 3
CHAPTER II 4
LITERATURE REVIEW 4
2.1 Theoretical Literature 4
CHAPTER III 8
overview of Ethiopian Economy, FDI, export and Import 8
3.1 ETHIOPIA; country profile 8
3.2 Ethiopian Economy 8
3.3 Regulations and Institutional framework of FDI in Ethiopia 10
3.3.1 Regulatory framework of FDI 11
3.3.2 Institutional framework of FDI 13
3.4 Performance of inward FDI 15
3.5 Sectorial distribution and sources of FDI 17
3.6 Export and Import Performance of Ethiopia 20
CHAPTER IV 24
EMPIRICAL RESEARCH DESIGN 24
4.1 Model specification and hypothesis 24
CHAPTER V 30
EMPIRICAL Result AND DISCUSSION 30
5.1 Data Analysis 30
5.1.1 Descriptive statistics 30
5.1.2 Stationary Test Result 31
5.1.3 Engle-Granger Test Result 34
5.1.4 Result of ECM (Error Correction Model) 35
CHAPTER VI 38
Conclusion and policy implications 38
6.1 CONCLUSION 38
6.2 POLICY IMPLICATION 39
6.3 Limitations and further study 40
References 41

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