Competitiveness and Determinants of Coffee Export in Ethiopia: An Analysis of Revealed Comparative Advantage and Autoregressive Distributed Lag Model

As an export commodity coffee industry contributes to the economies of both exporting and importing countries. The aim study involves competitiveness determinant in Ethiopia through period 1990–2018 observations. To explain level comparative advantage respectively Revealed Comparative Advantage Syematric were employed. capture determinans ARDL model with bound testing co-integration approach was employed investigate long run association between Ethiopian total bags (60kg each) domestic production,world coffe price,real exchange rate,FDI,world production price ratio. Eventhough has however, share it international market low amount and  not lined RCA. Bound result confirmed existence a long-run relationship exports its independent variables. analysis pointed out that extent production, world real rate positively significantly affects export. However, FDI, ration, have negative & significant effect. In short defined as positive significant  function but insignificant effect Level RCA well ration coffee.  Evidence from Granger causality test confirms unidirectional,bidirectional observed. Coefficient Error Correction Model (ECM (-1)) significant value 134.4 % adjustment would made each year returned equilibrium after 1.3 years. policy implication calls for addressing issues combined setting, institutions failures avoid evil sector. Keywords: Coffee Competitiveness  Determinant DOI: 10.7176/JESD/12-5-05 Publication date: March 31 st 2021