Individual Trade Balance in Some Major Agricultural Products: Evidence from Ethiopia

Abstract

As an agrarian economy it is little to expect for one nation to import more agricultural products than it exports. However, the ever-increasing total trade deficit in Ethiopia comes from both agricultural and industrial sector.  The country reported a huge individual trade deficit in some agricultural product where it has potential to narrow the ever increasing aggregate trade deficit. The country had recorded a huge individual trade deficit in some major agricultural products like soya bean, Malt Not Roasted, Spelt,Common Wheat and Meslin, Durum Wheat, Grain Sorghum ,Dried Peas, Shelled And Wheat/Meslin Flour. Import and export values of each agricultural product  were used to calculate individual trade deficit. Data were analyzed using descriptive method.

This huge difference could also be reflected through the quantity measure. In both value and volume measures it seems as there is no promising figure to close such difference.

Thus the agricultural sector even is contributing for ever-increasing trade deficit in Ethiopia.

Keywords: Individual Trade Balance, Agricultural Products, Individual Trade Deficit