FACTORS AFFECTING THE EXPORT IN ETHIOPIA. A SVAR APPROACH

Export is the easiest and the most favored ways for developing countries to generate income for development activities. One critical factor that has begun to receive considerable attention more recently is the role of international trade in the growth process. The positive link between export and economic growth has been given more attention since the time of classical economists that said trade is equivalent to an engine of economic growth. There is a consensus that increased export growth leads to overall economic growth. Indeed, the experiences of the Asian Tigers and more recently of Brazil, China, India and South Africa support this observation (Fugazza, 2008).