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

Year 2024, , 21 - 44, 08.12.2024

Betselot Adisu Ayal , Nani Debele Dubale , Esayas Bamlack Bishaw

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

Abstract

The first decade of the 21st century marks a new phase in relations between Ethiopia and Turkey. During this period, relations between the two countries transformed into an unprecedented stage. The aim of this study is to examine the challenges of Ethio-Turkish economic relations from 2012 to 2023, with particular reference to trade and FDI. To attain its objectives, the study employed a qualitative research approach. Essentially, primary data were collected through key informant interviews, observation, and document reviews. Despite the growth in trade and foreign direct investment between the two countries, various challenges hinder the smooth operation of these economic ties. The main results of this study show that issues like changing exchange rates, lacking access to the Generalised System of Preferences (GSP), corruption, inefficient government, high tariffs, infrastructure issues, companies that can't pay their debts, customs procedures, fluctuating exchange rates, and a lack of data were major problems for trade and investment between Ethiopia and Turkey. The findings of the study suggest that there are certain problems that need policy measures for further industrial development through attracting foreign direct investment.

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.

Türkiye'nin Etiyopya'daki Ticareti ve Doğrudan Yabancı Yatırımları: 2012-2023 Arası Zorluklara Dair Bir Bakış

Abstract

The first decade of the 21st century marks a new phase in relations between Ethiopia and Turkey. During this period, relations between the two countries transformed into an unprecedented stage. The aim of this study is to examine the challenges of Ethio-Turkish economic relations from 2012 to 2023, with particular reference to trade and FDI. To attain its objectives, the study employed a qualitative research approach. Essentially, primary data were collected through key informant interviews, observation, and document reviews. Despite the growth in trade and foreign direct investment between the two countries, various challenges hinder the smooth operation of these economic ties. The main results of this study show that issues like changing exchange rates, lacking access to the Generalised System of Preferences (GSP), corruption, inefficient government, high tariffs, infrastructure issues, companies that can't pay their debts, customs procedures, fluctuating exchange rates, and a lack of data were major problems for trade and investment between Ethiopia and Turkey. The findings of the study suggest that there are certain problems that need policy measures for further industrial development through attracting foreign direct investment.

Keywords

Ethio-Turkey relation, Trade, FDI, Challenges

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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