Determinants of coffee export in Ethiopia: a gravity model analysis

Abstract

This study analysed the factors that determine the volume of ECE based on panel data for the years 2001 to 2021 using gravity model. Results indicate that, exporter GDP and importer population and distance have significant negative effect. Importer GDP and exporter population was found to have a significant positive effect on ECE. Countries that share a common border and common currency are found to export mor than countries that do not share a common border or a common currency. The effect of the dummy variables common language, land locked exporter and land locked importer are found to be mixed. Trade openness to larger as well as neighbour countries can benefit Ethiopia from trade.