A Comparative Study of the Impact of COMESA and IGAD on Ethiopian Trade

Abstract

Regional integration in Africa has a long history. However, intra-regional trade lags behind other developing regions. This thesis focuses on Ethiopia, a founding member of the Common Market for Eastern and Southern Africa (COMESA) and the Intergovernmental Authority for Development (IGAD), and investigates its utilization of regional economic communities for trade and engagement in the globalized world. Employing indicators such as the Trade Intensity Index and Revealed Comparative Advantage, the thesis assesses the correlation between the comparative advantage of Ethiopias export products and the share of exports to COMESA and IGAD. The study is conducted on six case study export products based on two-digit Harmonized System (HS) code: code 1 – live animal, code 4 – diary product, code 9 – coffee, tea, mate and spices, code 11 – products of the milling industry, code 30 – pharmaceutical products, and code 70 – glass and glassware. The findings of the correlation assessment reveal alignment between comparative advantage and export share in five products, except for live animal (code 1), indicating the presence of a trade barrier between Ethiopia and COMESA. Based on the result, the thesis highlights the importance of Ethiopias active participation in international trade and regional economic communities, which can lead to economic growth, development, and improved market access.