Trade and Investment Trends Between Ethiopia and Turkey: A Comprehensive Study from 2012 to 2022

This study analyses the trade and investment interactions between Ethiopia and Turkey from 2012 to 2022. During this timeframe, Ethiopia, known for its growth in Africa, and Turkey, a key player in emerging markets, experienced substantial growth in mutual economic ties. To attain these objectives, a mixed research approach with both explanatory and descriptive research designs was used. The research employs a mixed-methods approach, combining quantitative data analysis of trade volumes, investment flows and sectoral contributions with qualitative assessments derived from interviews with key stakeholders and reviews of relevant policy documents. The acquired data was analysed using descriptive statistics. This study found that Ethiopia chronically runs a negative balance in its trade with Turkey. The unequal trade terms between agricultural commodities major exports and capital goods major imports can largely explain Ethiopia’s trade deficit. The study’s significant findings indicate that despite fluctuations in relations from time to time, Ethio-Turkey trade and FDI have seen a positive dimension and have increased rapidly in recent years. In terms of capital, Turkish investment was the second highest, followed by China in Ethiopia. Turkish FDI is a key source of capital inflow and a driver of economic growth and development in Ethiopia.