Trade and Investment Flows between India and the European Union - Issues and Challenges

Ethiopia is the 83rd largest economy in the globe according to the World Bank figures for 2013. The country is considered to have huge but untapped potentials in the sub Saharan Africa region as well as one of the attractive investments destinations on the continent. This study therefore examined the investment flows and intensity of trade between Ethiopia and the individual BRICS for the period 1995 to 2011. A striking finding is that not a significant proportion of the BRICS investments in Africa go to Ethiopia. With respect to trade flows, Ethiopia recorded trade deficit with all the BRICS countries in the period under review, while its trade intensity index with all of them was less than one. Arising from these findings a number of relatable policy implications are documented. First, given that Ethiopia is considered as one of the recent success stories in Africa, the BRICS in general and South Africa in particular may explore areas of potential benefits by improving bilateral economic relationship with the country. Second, given that Ethiopia is experiencing massive developments in its infrastructure, South Africa may take advantage to invest in some of the projects. Third, the relatively low trade intensity with Ethiopia means that going forward there are possible areas of opportunities that may exist which may ultimately boost trade flows between Ethiopia and the BRICS.

European Union (EU) is second largest trade partners of Ethiopia accounting for 14.5% of Ethiopia's total trade just after China in 2013. EU exports to and imports from Ethiopia are slowly gaining momentum. Ethiopia is looked upon as important development assistance partners of EU in Africa. Still this holds true or there is any improvement in commercial trading relationship between Ethiopia and EU. Further, what will be the future of the bilateral and multilateral trade between Ethiopia and EU? In order to know the answer, we attempted to analyze the trend of trade between the two trade partners and then projected the potential of the future trade between them. Here we have applied projected growth rate formula to guess the volume of future trade between two trade partners. Further, what are the important factors responsible for the trade flows between them? To know this, we further attempted to correlate certain selected variables with total trade position of the Ethiopia with EU.

2008

From my studies, I have come to know that some developing countries have enjoyed economic growth following the adoption of trade liberalization while others seem to be hurt by free trade agreements and policy of trade liberalization. My country, Ethiopia, being one of the developing countries, has opened its borders for trade since 1992.I am motivated to do the impact of this opening of borders to trade owing to the puzzle on other developing countries. First, I want to express my profound debt of gratitude to my advisor Professor Ulltveit-Moe for her constructive comments and valuable advices throughout the preparation of this paper I am so much grateful to QUOTA Scholarship Program and Professor Knut Sydsaeter that helped me to come Norway for the masters program in Development and Environmental Economics. More over, I would like to thank Frehiwot Fantaw, Omar Ibrahim, Tigabu Degu and Seid Mohamed who helped me to get the required data for my variables from National Bank of Ethiopia(NBE) ,Central statistical Authority(CSA)and Ministry of Finance and Economic Development. I also forward my gratitude to Tigabu Molla, Berhe Mekonen and all friends who provide me with invaluable advice to accomplish my thesis. Lastly, this thesis would not have been accomplished with out the moral support I have received from my family.

SSRN Electronic Journal

Development on development in middle-income economies in Sub-Saharan Africa (henceforth SSA, or Africa). The first two papers (Gill and Karakülah, 2018a and 2018b) explore the slowdown in economic growth and the acceleration of increases in public debt in the region. The objectives of the third (Gill and Karakülah, 2018c) and this fourth paper are to understand the changes in economic relationships between the African subcontinent and China and India, respectively, especially since the turn of the century. They emphasize the similarities and differences in their investment, trade and development assistance relations with Africa. This paper investigates India's trade and investment relationship with SSA. The paper reviews (i) trade and investment relations between India and Africa by analyzing period-wise export and import transactions, (ii) investments by Indian private and state-owned enterprises in SSA, and (iii) loans extended by the Indian government to various African nations. It also contrasts India's trade and investment in SSA with China's economic connections with the region. Using case studies of the involvement of Indian private enterprises in three development-critical areashealthcare, telecommunications, and renewable energy-the paper identifies measures that might be considered by policymakers in the two subcontinents to foster facets of the relationship that provide benefits both for Africa and India. Put another way, the paper asks whether India's increasing economic imprint in Sub Saharan Africa is aiding development efforts of the countries in the continent (Gill and Karakülah, 2018, asks whether China's economic activities-trade, investment and aid-are helping or hurting Africa). Economic relations amongst developing countries can only be stable if they are based on mutual benefit. Relations between middle-income Africa, lower middle-income India and upper middle-income China are not just stable but quite bouyant, so the answer is pretty straightforward. What is also becoming clear is that the view of Africa as a low-income region trading mostly with high-income economies in Europe and North America is obsolete. Africa should now be seen as a mainly middle-income region with ever-stronger economic ties with middle-income economies in Asia and other parts of the world.

Policy Research Working Paper Series, 1993

2016

This work is dedicated to my wonderful husband Fasil Teka Birega and my daughter Abigail Fasil Teka. You were my true courage and strength throughout this period. Thank you for believing in me. iii ACKNOWLEDGMENT  I thank God for giving me the courage and the determination as well as the guidance in writing this thesis, despite all the difficulties.  I would like to express my gratitude to my supervisor Distinguished Professor Vishnu Padayachee for his great support and encouragement from the inception to finalization of this research.

2006

The results presented indicate that a free trade area would reinforce the linkages between Ethiopia and European countries, including traditional partners such as Italy, with implications for the regional integration arrangements that Ethiopia is currently involved in. There will be significant trade diversion away from other African countries currently trading with Ethiopia. The diversion will occur in the low-technology sectors, which are potentially good foundations for deepened regional integration based on trade in industrial goods. The results further indicate some important implications with respect to Ethiopia's industrialization strategy. The liberalization of industrial sectors result in more trade effects, particularly negative trade diversion, compared to the results from agricultural liberalization. The loss in revenue, which is a strong feature in general liberalization, is at the sectoral level, more pronounced in the industrial liberalization. The economic structure of Ethiopia, which supports self-reliance in food from the agriculture sector, underpins the limited losses in agriculture as compared to the industrial sector. Clearly, instead of opening the doors to economic diversification, the EPA could lead Ethiopia to deepen its comparative advantages in agricultural products.

Abdella Mohammed Ahmed (M.Sc.), 2024

It is known that Ethiopians were engaged in import and export of different commodities during the time in which the axumit kingdom was in height of its power. It was carried out traditionally until after the Italian invention it was organized under the ministry of trade. This is continued until 1974 without government intervention in the trade sector when the degree regime took power all of the economy activity becomes centralized including foreign trade. After the fall of the degree the transitional government of Ethiopia took certain measures to be liberalized trade and get in the international market of full swing. Ethiopian foreign trade caricaturized by exporting primary commodity, fluctuation involve and volume of export, importing capital item, few destination for its export. There for this study aimed at assessing the contribution of the sector in the country’s economy and with regard or the source of data, secondary data is entirely used and this data was covers the period 1981/82- 2008/09. Descriptive analysis was used to analysis the data. Tables were used to show the trends of contribution of the sector to the material wellbeing and the trend volume value of export and import for the period under consideration.

African Review of Economics and Finance, 2013

Ethiopia is in the midst of a sustained growth surge that is becoming increasingly broadbased, building on major improvements in educational attainment, improved health outcomes, and infrastructure capacity in terms of access to power, transportation and telecommunications. The Government's Growth and Transformation Plan sets ambitious targets for further improvements in these areas, together with significant reforms aiming to improve trade logistics, by rolling-out the authorized economic operator program across export-oriented industry parks and improving the main export corridor to Djibouti. This industrialization push coincides with global trends that provide Ethiopia an opportunity to integrate its economy into the modern "Made in the World" production system, including by attracting labor-intensive production, which is leaving China and other East Asian economies due to their rising wage rates. This paper considers Ethiopia's prospects to succeed in this endeavor. It reviews overall economic management and performance indicators and provides a horizontal overview of the investment framework. It then summarizes the investment prospects in several major sectors of the economy, in light of Ethiopia's emerging capacities and global developments: agriculture, mining, oil & gas, economic infrastructure, manufacturing, and selected services, including health and tourism.

Journal of Economic Structures

Introduction 1.1 Background According to WB estimates, Ethiopia is one of the fast-growing African economies with an average growth record of 10.6% for the past one and half decades (World Bank Group 2016). Ethiopia's growth was induced by factors including agricultural modernization; development of new export sector; strong global demand for commodities and Government led development investments (WB 2012). Currently, the Government of Ethiopia is implementing its second phase Growth and Transformation Plan (GTP-II) for the period of 5 years (2015/16-2019/20) with an aim of transforming the country into a manufacturing hub (World Bank Group 2016). The country is the host of the second largest population in Africa with the population size of 99.39 million in 2015, according to the WB population estimates.