Decomposing Terms of Trade Fluctuations in Ethiopia

Josef Loening and Masato Higashi

VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis from Verein für Socialpolitik / German Economic Association

Abstract: This paper proposes a technique to decompose short-run fluctuations in the terms of trade. Using Ethiopia as an example, we decompose the commodity terms of trade into various components to measure the impact of price and volume shifts as well as export diversification. We use monthly data from the past decade, including periods during the global food and financial crises. Our findings suggest that diversification out of traditional coffee exports to other export commodities successfully mitigated a terms of trade shock. Continued export diversification will be beneficial.

Keywords: Terms of Trade; Food Price Crisis; Financial Crisis; Ethiopia (search for similar items in EconPapers)
JEL-codes: F14 O11 O55 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Decomposing terms of trade fluctuations in Ethiopia (2011)
Working Paper: Decomposing Terms of Trade Fluctuations in Ethiopia (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc11:48727

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