Decomposing Terms of Trade Fluctuations in Ethiopia
AbstractThis paper 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 a terms of trade shock. Continued export diversification will be beneficial.
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Bibliographic InfoPaper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 205.
Length: 11 pages
Date of creation: 08 Oct 2010
Date of revision:
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Terms of Trade; Food Price Crisis; Financial Crisis; Ethiopia;
Other versions of this item:
- Josef Loening & Masato Higashi, 2011. "Decomposing terms of trade fluctuations in Ethiopia," Applied Economics Letters, Taylor and Francis Journals, vol. 18(13), pages 1219-1224.
- 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.
- 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
This paper has been announced in the following NEP Reports:
- NEP-AFR-2010-11-13 (Africa)
- NEP-AGR-2010-11-13 (Agricultural Economics)
- NEP-ALL-2010-11-13 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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