Abstract:
The purpose of this study is to discuss and examine the determinant of service export in Ethiopia
within global context. A gravity trade mode is engaged by using panel data for 29 main
service trading partners of Ethiopia covering the period 2000-2013, using FGLS econometric
techniques. The estimation result suggests that the service export of the country is highly
dependent on both internet users of Ethiopia and trade partners which could result in facilitate it
when internet users is further service export by reduced transportation cost and expand
customer easily, surprise case since there is existing of infant information technology throughout
the country. This paper also assesses and confirms other determinants of the service export
sector. The result indicate that GDP per capita of Ethiopia and partners are positively related
to the counties export while the Distance between and common language dummy have
negative impact on the export. Moreover, the analysis suggests that regulatory policies affecting
telecommunications and Internet development indirectly affect service export, further
emphasizing the importance of deregulating potentially competitive services in the
telecommunications industry.
