Decomposing terms of trade fluctuations in Ethiopia
AbstractThis article proposes a technique to decompose short-run fluctuations in the terms of trade. Using Ethiopia as an example, we decompose the commodity terms of trade into various components to measure the impact of price and volume shifts as well as export diversification. We use monthly data from the past decade, including periods during the global food and financial crises. Our findings suggest that diversification out of traditional coffee exports to other export commodities successfully mitigated the terms of trade shock. Continued export diversification will be beneficial.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 18 (2011)
Issue (Month): 13 ()
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Other versions of this item:
- Loening, Josef L. & Higashi, Masato, 2011. "Decomposing Terms of Trade Fluctuations in Ethiopia," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48727, Verein für Socialpolitik / German Economic Association.
- Josef L. Loening & Masato Higashi, 2010. "Decomposing Terms of Trade Fluctuations in Ethiopia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 205, Ibero-America Institute for Economic Research.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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