International Journal of Commerce and Management Research

International Journal of Commerce and Management Research


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 7, Issue 3 (2021)

Economic relationship with China: The propeller of Ethiopia’s economic growth


Merkeb Fisseha

Despite numerous policies, initiatives, and ventures, Ethiopia's quest for prosperity, which has lasted several decades, has yet to achieve the desired objectives of poverty reduction. Economic growth research, described many factors, including the macroeconomic framework, the political and social environment, and the investment deficit. Since 1995, China and Ethiopia have formed a close alliance. Between both parties, the formation of this alliance was inspired by diplomatic, strategic, and even political factors as well as economic ones. For China, trade and investment partnerships with Ethiopia are a medium rather than an end in themselves. In the case of Ethiopia, ties with China mainly serve the internal political and economic objectives of the system that has been in place since 1991. The alliance is representative of China's unique yet asymmetrical relationship with the countries of the South that are highly relevant yet economically disadvantaged. The study shows that the future is very positive, given that additional underlying steps are placed in place to boost the overall market climate and, more specifically, to enhance the absorption potential of the local workforce. The results also suggest that the main beneficiaries of the alliance have so far been the Chinese.
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How to cite this article:
Merkeb Fisseha. Economic relationship with China: The propeller of Ethiopia’s economic growth. International Journal of Commerce and Management Research, Volume 7, Issue 3, 2021, Pages 01-06
International Journal of Commerce and Management Research International Journal of Commerce and Management Research