Thesis (M.Com. (Development Theory and Policy))--University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Economic and Business Sciences, 2016 / The role of international trade in countries development process is well documented. In this era
of globalisation, the notion of free international trade has dominated both the political and
economic discourse. It is presumed that integration of poor countries into the world economy
will be advantageous to sustain economic development. A growing number of economists
however, doubted the benefit that could emanate by engaging in trade liberalisation most
importantly multilateral trade agreements. Primarily because membership necessitates opening
up their immature economy to stiff foreign competition. Nevertheless, many developing
countries have joined the WTO with its perceive benefits of increasing market access and
integration into the global market. Theoretically, both the Classical and Neo-classical trade
theories signify the benefits of unrestricted trade towards the development of economies.
This research report investigates the rationality or otherwise of Ethiopia’s accession into the
WTO. Specifically, the research has looked at the possible economic benefits of joining WTO as
a result of increased market access and pinpoint the challenges the country could face with
regard to current account BOP disequilibrium. The economic rationale of the integration of
developing countries has been closely linked to the benefits to be derived from increasing market
size. The study employed secondary data to answer the research questions and reach at
conclusion. The results indicate that for the country to be benefited from the increased market
access, there is a need to diversify the export basis as well as adding value to the existing export
commodities. The trend analysis with regard to BOP current account deficit illustrate that the
trade deficit is widening in the recent time. Appropriate measures should be in place to reduce
the aggravated BOP disequilibrium. / MT2017
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/22212 |
| Date | January 2016 |
| Creators | Tefera, Ejigayhu Sisay |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | Online resource (64 leaves), application/pdf |
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