Journal Press India^®

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Export plays a major role in the economic development of a country. The benefit derived from export is also increases in the globalized world. Ethiopia as one of the emerging economy country faces problems in the export performance of its major export commodities such as coffee, khat, oil seed, leather and textile products, and horticulture sub sector. Factors related to FDI, GDP, real effective exchange rate, export promotion programs, international standard certificates, infrastructural developments, export policies of the government, marketing strategies of firms land lockdness of the country, lack of potential market, lack of skilled marketing personnel’s and technological advancement are the major inhibitors of the export performance. Therefore, Ethiopia needs to concentrate on structural problems and policy issues in order to benefit from FDI and enterprises in these countries also should give priority to human resource and R&D. With respect to its land lockdness the country can improve its export performance by creating a more trade-friendly environment through lowering tariffs and entering into regional trade agreements. Flexibility in exchange rate fluctuations in keeping with economic fundamentals, improved domestic economic performance, attracting export-oriented investments would also contribute to export growth, and diversification of commodities. In other cases, in order to increase the performance of country's export market, businesses must participate in export promotional activities such as trade exhibits, trade missions, and trade affairs.

Keywords

Emerging economy, Export commodities, Foreign Direct Investment, Real effective exchange rate, Export policies

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