Türkiye’s Trade and Foreign Direct Investment in Ethiopia: An Insight into Challenges from 2012-2023

Year 2024, Volume: 11 Issue: 2, 21 - 44, 08.12.2024

Betslot Addisu Ayal , Esayas Bamlack Bishaw , Nani Debele

https://doi.org/10.26513/tocd.1467576

Abstract

This study delves into the examination of Türkiye's trade and foreign direct investment activities in Ethiopia spanning from 2012 to 2023, shedding light on the hurdles faced during this time frame. The economic ties between Türkiye and Ethiopia have expanded, with trade volumes and foreign direct investment (FDI) inflows increasing over time. Nevertheless, several obstacles have arisen that impact the course of their relationship. This study sought to accomplish its objectives by gathering data through key informant interviews, observations, and document reviews. The key findings of this research reveal that challenges such as exchange rate fluctuations, human capital shortages, corruption, bureaucratic inefficiencies, high tariffs, infrastructure deficiencies, political unrest, non-payment by companies of their debts, customs procedures, and Türkiye's internal conditions impede the smooth flow of trade and foreign direct investment between the two countries. The study emphasizes the importance of joint efforts between the Turkish and Ethiopian governments, as well as private sector entities and regional collaborators, to address these pressing issues.

Keywords

Challenges, Ethiopian-Turkish relations, Trade, FDI

Ethical Statement

We are committed to upholding the highest standards of academic integrity and rigorously ensuring the authenticity of our research. Therefore, we believe that the findings of our similarity index check demonstrate the originality and novelty of our contribution to the field of economics, particularly regarding Turkey’s Trade and Foreign Direct Investment in Ethiopia

Supporting Institution

Dire Dawa University

Thanks

We appreciate the opportunity to submit our manuscript to the Turkish Journal of Middle Eastern Studies and sincerely hope that our research aligns with the journal's scope and interests.

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