The developmental impact of Asian drivers on Ethiopia with emphasis on small-scale footwear producers

This paper examines the developmental impact of China and India on Ethiopia by examining macro-level trade, investment and aid relations, and micro-level impacts on local small-scale footwear producers in Ethiopia. Both secondary and primary data were used in the study. At the macro level, there is clear evidence of an increase in trade between Ethiopia and China and India. However, the trade balance disfavours Ethiopia and China has displaced other countries as export destinations for Ethiopia. At the local level, Chinese imports of footwear have forced local enterprises to downsize their activity and lose assets and money. The paper underlines that the Ethiopian government, non-government organisations and local producers should work together in order to withstand the negative impacts of footwear imports by raising the competitiveness of the local producers.