Ethiopia's Potential Move to COMESA FTA Could Boost GDP and Welfare
The study looked at how different trade agreements would affect Ethiopia's economy. They used a special model to analyze the impact of joining a Free Trade Area in Africa, a customs union, and a European trade agreement. The results showed that most regions in Africa benefit from the Free Trade Area, while customs unions could lead to losses for some countries. For Ethiopia, joining the Free Trade Area would improve trade balance, but customs unions and the European agreement could result in welfare losses. Overall, it's suggested that Ethiopia should focus on joining the Free Trade Area for now.