China and India and Ethiopia final report - FES Ethiopia

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1. Introduction1.1. Background1.2. Objectives1.3. Research Methods1.4. Scope and limitations of the Study1.5. Organization of the Report2. Overview of the Ethiopian Economy and Review of Studies2.1. Overview of the Ethiopian economy2.2. Review of empirical studies3. Sino-Ethiopian and Indo-Ethiopian Relations and Cooperation3.1. The Evolution of Relations3.1.1. Diplomatic Relations3.1.2. Bilateral Agreements3.2. Development Cooperation3.2.1. Aids and Sector it Finances3.2.2. Loans and Sector it Finances4. Trade and Investment Flows4.1. Trade Flows4.1.1. Exports to China and India4.1.1.1. Trends in Exports and Rank among Trading Partners4.1.1.2. The Composition of Exports4.1.2. Imports from China and India4.1.2.1. Trends in Imports and Rank among Trading Partners4.1.2.2. The Composition of Imports4.1.3. Trade Balance4.2. Investment Flows4.2.1. Private Investment (FDI)4.2.1.1. Investment Flow4.2.1.2. Sectoral Concentration5. Chinese and Indian Companies’ in Infrastructure Development6. Impacts of the global Financial Crisis on the Relationship7. Conclusions and policy implications7.1. Conclusions7.2. Policy ImplicationsReferences2
1. Introduction1.1. BackgroundEthiopia has been trading with various countries across the world, however, itsmajor trading partners, both as destinations of its exports and origins of itsimports, remain concentrated Europe for many years. However, the trendseems taking another direction since recently. The major trading partners ofEthiopia which were, in order of importance, Saudi Arabia, Germany, Italy,Djibouti, Japan, USA, UK, China in 1997/98 have changed in recent years. In2006/07, for instance, the ranks of our major trading partner countries havetaken a striking different shape, China coming from the bottom to the top.Offering preferential treatment for each others` products has helped tostrengthen economic ties between countries. Such treatment will lead trade toflow to the direction it get the maximum out of transaction. In this regard, EU,USA, Japan and others have been offering quota and tariff free market accessfor exports originating from LDCs including Ethiopia. China has also startedoffering tariff free market access to exports from African countries, includingEthiopia.On account of the enabling conducive investment environment and generousincentive package to private investors, FDI flow into the country has beengrowing especially the FDI flow from China and India. According to theEthiopian Investment Agency (EIA), the number of registered Chinese andIndian investors is increasing dramatically compared with other countries.Following the downfall of the Derge regime, Ethiopia has managed to improveits relationship with the western developed countries. As a result, it has beenreceiving significant amount of development assistances and loans, of course,with political conditionalities of some sort.3
Page 1: A Survey of the Economic and TradeR
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 and 12: Table 2.3 Export by Destination (sh
Page 13 and 14: China, P. Rep. 7.1 8.4 9.3 10.3 11.
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
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The financial crisis that affects C
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exports and higher prices, however
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IDS (2009), China and the global fi
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China and India and Ethiopia final report - FES Ethiopia

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