China and India and Ethiopia final report - FES Ethiopia

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Table 2.4: Major Imports (Share in %)2002/032003/042004/052005/062006/072007/08Six-yearAverageRaw Materials 1 1 1 2 3 4 2.0Semi-Finished 15 17 18 19 15 20 17.3GoodsFuel 15 12 18 15 17 18 15.8Capital Goods 30 34 33 33 36 28 32.3Consumer Goods 35 35 27 29 26 24 29.3Miscellaneous 4 2 2 2 3 6 3.2Total Imports 100 100 100 100 100 100 100Source: National Bank of EthiopiaEthiopia has been trading with various countries across the globe but withdifferent degree. The country has been purchasing a significant part of itsimports from Saudi Arabia, China, Italy, USA, and United Arab Emirates withrespective shares of 11.8%, 11.5% and 7.14 %, 7.06 and 5.8 % respectively in thelast eight years. While the share of China and United Arab Emirates kept onincreasing, the share of Germany, USA and Italy kept on declining (Table 2.5).Over 70 percent of fuel import to Ethiopia is exports of Saudi Arabia.Table 2.5: Imports by Origin (Share in %)Country2000/012001/022002/032003/042004/052005/062006/072007/08Eight-yearAverageSudan 0 0.1 0 0.4 1.4 0.4 1 2.1 0.7U.A.R 1.1 0.9 6.9 9.5 6.1 6.7 5.2 9.8 5.8Germany 4.9 5.3 4.3 3.8 3.3 3.9 3.7 3.3 4.1Italy 7.7 8.9 6.9 10.7 4.2 5.8 7.7 5.2 7.14Russia 1 0.4 1.4 1 1.2 0.8 1 1.5 1.0U.S.A. 5.1 9.6 6 8.6 10.6 8.4 3.8 4.4 7.0612
China, P. Rep. 7.1 8.4 9.3 10.3 11.5 13.2 16.6 15.6 11.5Japan 5 3.5 6.5 4.5 3.3 3.4 6.2 4.9 4.7Saudi Arabia 4 13.6 8.2 8.4 17 14.9 15.1 13.2 11.8Rest of the 51.4 36.9 37.3 31.5 32.9 33.9 32.8 36.3 36.6WorldSource: National Bank of Ethiopia2.2 Review of Empirical StudiesIn recent years, the two largest countries in Asia, China and India, have becomeincreasingly important players in the global economy. Their rapid growth andincreased openness since 1990s has led to concerns in both developed anddeveloping countries. But up to now no attention has been paid to researchtheir impacts on Africa, despite the fact that trade between China and Indiaand Africa has recently grown significantly. Both countries have also emergedas sources of FDI in the continent (Boardman, 2007).In fact, there could be direct and indirect impacts of the growth performance ofChina and India on Ethiopia. The direct impact, can take a number of differentforms. First, there may be an increase in exports from Ethiopia to bothcountries. Secondly, Ethiopian imports from both countries are likely toincrease significantly. Thirdly, there may be increased competition betweenChina and India and Ethiopia in third markets, which could have negativeimpacts on the Ethiopian exports. Finally, there may be effects on FDI toEthiopia, either negative, if investment is diverted to China and India, orpositive if China and India becomes significant sources of FDI in Ethiopia.The indirect positive impacts of the Chinese and the Indian economic growthon the Ethiopian economy can materialize through the following channel.. Thegrowth of both countries will increase the demand for primary commodities inChina and India which, in turn push up prices of these commodities. Thus,13
Page 1 and 2: A Survey of the Economic and TradeR
Page 3 and 4: 1. Introduction1.1. BackgroundEthio
Page 5 and 6: • examine the impacts of the curr
Page 7 and 8: 2. Overview of the Ethiopian Econom
Page 9 and 10: The structure of the economy has no
Page 11: Table 2.3 Export by Destination (sh
Page 15 and 16: usually appreciate the import of ch
Page 17 and 18: a recipient much as it has been wit
Page 19 and 20: has become a favored testing ground
Page 21 and 22: While the ESI correctly shows that
Page 23 and 24: On November 24th, 1970, the People
Page 25 and 26: In May 2007, China's Assistant Mini
Page 27 and 28: Ethiopia. Starting from 1988, every
Page 29 and 30: Although Ethiopia’s major trading
Page 31 and 32: Attempt is made here to examine the
Page 33 and 34: 4.1.2.1 Trends in Imports and Ranks
Page 35 and 36: percent in 2008. This was due to re
Page 37 and 38: Imports from both China and India,
Page 39 and 40: FDI by looking at the number of lic
Page 41 and 42: It is possible to make comparison b
Page 43 and 44: Table: 4.6 Sectoral distributions o
Page 45 and 46: 4.3.1 RoadRoad sector is among majo
Page 47 and 48: Source: ERA2007 13 1 7.7 122008 12
Page 49 and 50: themselves finance. Indian companie
Page 51 and 52: 5. Impacts of the Global crisis on
Page 53 and 54: The financial crisis that affects C
Page 55 and 56: exports and higher prices, however
Page 57: IDS (2009), China and the global fi

China and India and Ethiopia final report - FES Ethiopia

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