LEATHER AND LEATHER PRODUCTS EXPORT AND ITS CONTRIBUTION FOR ECONOMIC GROWTH IN ETHIOPIA: A TIME SERIES DATA ANALYSIS

Abstract

This paper has conducted an empirical investigation of leather and leather products export and its contribution to economic growth in Ethiopia. The study employed a time series data, the period from 1984/85 to 2019/20. The data set was collected from National Bank of Ethiopia, International Monetary Fund, Ethiopian Gumruk Commission and World Bank. This study employed Vector Error Correction Model and Johanssen co-integration test for data analysis. The result indicates that, the variables used in the study were non-stationary at level but they were found to be stationary at their first difference. The study also found that leather and leather product export, gross capital formation, have a positive association on economic growth and statistically significant association with economic growth in the long run. In the long run, improving leather and leather products export and net financial flow and labor force contribute for economic growth in Ethiopia. Increasing the volume of leather and leather products export and the improvement of the quality of leather product are increase the demand of the people and improves economic growth. This finding is consistent with our objectives and research questions sequences. This thesis ends with some policy recommendations. To maximize the gain from the sector the country should be cautiously allied to bordering country, which plan and designed in a sustainable way of export of leather product and pointing to escalation Ethiopian leather and leather products export and should also increase its trading partner among African and world countries.