Long run efffect of export volatility on GDP, case of Ethiopia

This master study has investigated the long-run effect of export volatility on GDP growth in Ethiopia. To address this research topic the paper has used extended Cobb-Douglas production growth model. The study have been used five variables inputs i. e, export of good and service, stock of capital, GDP and export volatility index and labor. The coverage of the time series data was from the year 1981 to 2011. According to the paper empirical finding result, the long run effect of export volatility seems to have negatively statistical effect on output growth on Ethiopia. As remedial the study suggests that the country should have to diversify its export commodities where it has comparative advantage. In addition, the country should also increase its trading partner countries