Economic Significance of Specific Export Promotion on Poverty Reduction and Inter- Industry Growth of Ethiopia

Micro simulated general equilibrium approach was used to analyze the economic significance of the current export promotion policy of Ethiopia. Simulation results, in general, indicated little achievements of economic growth and poverty reduction under selective export promotion. In this policy approach, only rural households were able to acquire higher income and lower poverty incidence. These achievements however were transmitted to small and big urban households when export promotion was assumed to be implemented across the board of all agricultural activities. Significant economic and inter-industrial growths were attained when the coffee industry was given equal policy treatments like other export agriculture