The Role of Manufacturing and Service Exports in Ethiopia’s Economic Growth Performance

The purpose of this study is to investigate the role manufacturing and service exports in Ethiopia’s economic growth performance from 1995 until 2018. To accomplish objective, developed two versions an augmented Solow’s (1956) model. Both include as potential determinants total factor productivity (TFF). However, first version proxies physical capital accumulation with investment rate, second uses per worker. autoregressive distributed lag (ARDL) bounds testing results suggest that there no long-run relationship among variables. Moreover, ratio labour force rate variables are statistically insignificant, which contradicts theoretical predictions Solow On other hand, model worker shows evidence a cointegrating support export-led hypothesis Ethiopia, significant, while insignificant long run. Conversely, show has positive significant effect on performance. Overall, main findings Ethiopian government should strengthen current policies emphasize maintain high rates capital.