Chari et al
Greener Journal of Economics and Accountancy Vol. 2 (2), pp. 051-057, June 2013
ISSN: 2354-2357 © 2011 Greener Journals
Comparative Advantage of Ethiopia and the Role of International Purchasing
*Felix Chari, Bongani Muchanyuri & Macleans Mzumara
Department of Economics, Bindura University of Science Education, P/Bag 1020, Bindura, Zimbabwe.
*Corresponding Autyhor’s Email: charifelix93 @ gmail. com
The authors investigated the comparative advantage of Ethiopia and the role played by international purchasing. They found that Ethiopia has 302 product lines in which it has revealed comparative advantage, RCA equal and greater than 1. The authors have concluded that Ethiopia has comparative advantage in 302 products. Tanned/crust skins of sheep/lambs were found to have a revealed comparative advantage index of 1821.51. International purchasing play a significant role in promoting comparative advantage.
Keywords: International trade, international purchasing, exports, revealed comparative advantage, Ethiopia.