Analysis on Ethiopia’s Revealed Comparative Advantage and Its Structural Transformation

Abstract This study examines Ethiopia’s structural transformation by using the revealed comparative advantage approach using export data for years 1996–2018. Primary and low technology manufactured products have comparative advantage over other product groups for the periods 1996 to 2018. However, there is an improvement in all manufactured product categories except except low technology manufactured products (textile, garment and footwear) and resource-based manufactured goods. Thus, based on revealed comparative, structural transformation has occurred in the Ethiopian economy over the last decades but it is very insignificant. Hence, Ethiopia reveals strong comparative advantage in export of primary products, it is important to add value to these products for higher export earnings.