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Effect of COVID-19 on Trade in Case of Afar Regional State

Received: 28 February 2022     Accepted: 6 April 2022     Published: 14 April 2022
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Abstract

The COVID-19 pandemic will not only suppress economic growth, it will also adversely impact sustainable development, trade in the short run generally in the world and particular in Ethiopia, Afar. This study analyzed effect of COVID-19 on social welfare in case of Afar regional state, Ethiopia using panel data collected from a sample of 120 in Asyaita, Dubti Samara-logia and Awash town. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The descriptive analysis results revealed that the main source of income was emanated from self-employee (81.67%), from the total households 70% of them were engaged in service sector, due to COVID-19 the income trends of 81% households were decrease, increase expenditure on food & food items (13%) and on service delivering (15%). The econometrics model was based on panel data analysis from February 13, 2020 to June 13, 2020 to investigate the effect of COVID-19 on social welfare in the case of afar regional stated. After conducting necessary pre and post estimation test, we had found the following results. The econometrics model found that the three basic policy variables (number of COVID-19 victim, number of days with COVID-19 disease and transportation ban) were adversely affect welfare of the society by decreasing the income of households and increasing their expenditures. Finally, considering regional experience, econometric and descriptive results, this study recommends that the government and the concerned policy maker could undertake:- the government should give more attentions to service sector, supported those self-employee and daily laborer, make awareness to the society about COVID-19 epidemic, place alternative mechanism to fill potential trade gaps.

Published in International Journal of Economic Behavior and Organization (Volume 10, Issue 2)
DOI 10.11648/j.ijebo.20221002.14
Page(s) 64-71
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

COVID-19, Social Welfare, Panel Data Analysis, Fixed Effect, Random Effect

References
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[2] Wu, F., et al., A new coronavirus associated with human respiratory disease in China. Nature, 2020. 579 (7798): p. 265-269.
[3] Barro, R. J., J. F. Ursúa, and J. Weng, The coronavirus and the great influenza pandemic: Lessons from the “spanish flu” for the coronavirus’s potential effects on mortality and economic activity. 2020, National Bureau of Economic Research.
[4] Ethiopia, U., Socio-economic impacts of COVID-19 Update-14th May 2020. Update, 2020.
[5] WHO, W., WHO Director-General's opening remarks at the media briefing on COVID-19. www.who.int, 2020.
[6] Goshu, D., et al., Economic and welfare effects of COVID-19 and responses in Ethiopia: initial insights. 2020.
[7] Kassegn, A. and E. Endris, Review on socio-economic impacts of ‘Triple Threats’ of COVID-19, desert locusts, and floods in East Africa: Evidence from Ethiopia. Cogent Social Sciences, 2021. 7 (1): p. 1885122.
[8] McKibbin, W. and R. Fernando, The global macroeconomic impacts of COVID-19: Seven scenarios. Asian Economic Papers, 2021. 20 (2): p. 1-30.
[9] Annex, I. and V. I. Fiches, Mitigating the socio-economic impacts of COVID-19 in Ethiopia, with a focus on vulnerable groups.
[10] Beyene, L. M., T. Ferede, and G. Diriba, The economywide impact of the COVID-19 in Ethiopia: Policy and Recovery options. 2020.
[11] Nechifor, V., et al., COVID-19: socioeconomic impacts and recovery in Ethiopia. 2020: Publications Office of the European Union.
[12] Asegie, A. M., S. T. Adisalem, and A. A. Eshetu, The effects of COVID-19 on livelihoods of rural households: South Wollo and Oromia Zones, Ethiopia. Heliyon, 2021. 7 (12): p. e08550.
[13] Harris, D., et al., The Impact of COVID-19 in Ethiopia: Policy Brief. 2021.
[14] Barbero, J., J. J. de Lucio, and E. Rodríguez-Crespo, Effects of COVID-19 on trade flows: Measuring their impact through government policy responses. PloS one, 2021. 16 (10): p. e0258356.
[15] Kumari, M. and N. Bharti, Linkages between trade facilitation and governance: Relevance for post-COVID-19 trade strategy. Millennial Asia, 2021. 12 (2): p. 162-189.
[16] Liu, X., E. Ornelas, and H. Shi, The trade impact of the Covid-19 pandemic. 2021.
[17] Hayakawa, K. and H. Mukunoki, The impact of COVID-19 on international trade: Evidence from the first shock. Journal of the Japanese and International Economies, 2021. 60: p. 101135.
[18] Baye, K., COVID-19 prevention measures in Ethiopia: current realities and prospects. Vol. 141. 2020: Intl Food Policy Res Inst.
[19] Wooldridge, J. M., Introductory econometrics: A modern approach. 2015: Cengage learning.
[20] Asfaw, D. M., Analysis of technical efficiency of smallholder tomato producers in Asaita district, Afar National Regional State, Ethiopia. PloS one, 2021. 16 (9): p. e0257366.
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Cite This Article
  • APA Style

    Dagmawe Menelek Asfaw, Abdurhman Kedir Ali, Mohammed Adem Ali. (2022). Effect of COVID-19 on Trade in Case of Afar Regional State. International Journal of Economic Behavior and Organization, 10(2), 64-71. https://doi.org/10.11648/j.ijebo.20221002.14

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    ACS Style

    Dagmawe Menelek Asfaw; Abdurhman Kedir Ali; Mohammed Adem Ali. Effect of COVID-19 on Trade in Case of Afar Regional State. Int. J. Econ. Behav. Organ. 2022, 10(2), 64-71. doi: 10.11648/j.ijebo.20221002.14

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    AMA Style

    Dagmawe Menelek Asfaw, Abdurhman Kedir Ali, Mohammed Adem Ali. Effect of COVID-19 on Trade in Case of Afar Regional State. Int J Econ Behav Organ. 2022;10(2):64-71. doi: 10.11648/j.ijebo.20221002.14

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  • @article{10.11648/j.ijebo.20221002.14,
      author = {Dagmawe Menelek Asfaw and Abdurhman Kedir Ali and Mohammed Adem Ali},
      title = {Effect of COVID-19 on Trade in Case of Afar Regional State},
      journal = {International Journal of Economic Behavior and Organization},
      volume = {10},
      number = {2},
      pages = {64-71},
      doi = {10.11648/j.ijebo.20221002.14},
      url = {https://doi.org/10.11648/j.ijebo.20221002.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221002.14},
      abstract = {The COVID-19 pandemic will not only suppress economic growth, it will also adversely impact sustainable development, trade in the short run generally in the world and particular in Ethiopia, Afar. This study analyzed effect of COVID-19 on social welfare in case of Afar regional state, Ethiopia using panel data collected from a sample of 120 in Asyaita, Dubti Samara-logia and Awash town. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The descriptive analysis results revealed that the main source of income was emanated from self-employee (81.67%), from the total households 70% of them were engaged in service sector, due to COVID-19 the income trends of 81% households were decrease, increase expenditure on food & food items (13%) and on service delivering (15%). The econometrics model was based on panel data analysis from February 13, 2020 to June 13, 2020 to investigate the effect of COVID-19 on social welfare in the case of afar regional stated. After conducting necessary pre and post estimation test, we had found the following results. The econometrics model found that the three basic policy variables (number of COVID-19 victim, number of days with COVID-19 disease and transportation ban) were adversely affect welfare of the society by decreasing the income of households and increasing their expenditures. Finally, considering regional experience, econometric and descriptive results, this study recommends that the government and the concerned policy maker could undertake:- the government should give more attentions to service sector, supported those self-employee and daily laborer, make awareness to the society about COVID-19 epidemic, place alternative mechanism to fill potential trade gaps.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - Effect of COVID-19 on Trade in Case of Afar Regional State
    AU  - Dagmawe Menelek Asfaw
    AU  - Abdurhman Kedir Ali
    AU  - Mohammed Adem Ali
    Y1  - 2022/04/14
    PY  - 2022
    N1  - https://doi.org/10.11648/j.ijebo.20221002.14
    DO  - 10.11648/j.ijebo.20221002.14
    T2  - International Journal of Economic Behavior and Organization
    JF  - International Journal of Economic Behavior and Organization
    JO  - International Journal of Economic Behavior and Organization
    SP  - 64
    EP  - 71
    PB  - Science Publishing Group
    SN  - 2328-7616
    UR  - https://doi.org/10.11648/j.ijebo.20221002.14
    AB  - The COVID-19 pandemic will not only suppress economic growth, it will also adversely impact sustainable development, trade in the short run generally in the world and particular in Ethiopia, Afar. This study analyzed effect of COVID-19 on social welfare in case of Afar regional state, Ethiopia using panel data collected from a sample of 120 in Asyaita, Dubti Samara-logia and Awash town. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The descriptive analysis results revealed that the main source of income was emanated from self-employee (81.67%), from the total households 70% of them were engaged in service sector, due to COVID-19 the income trends of 81% households were decrease, increase expenditure on food & food items (13%) and on service delivering (15%). The econometrics model was based on panel data analysis from February 13, 2020 to June 13, 2020 to investigate the effect of COVID-19 on social welfare in the case of afar regional stated. After conducting necessary pre and post estimation test, we had found the following results. The econometrics model found that the three basic policy variables (number of COVID-19 victim, number of days with COVID-19 disease and transportation ban) were adversely affect welfare of the society by decreasing the income of households and increasing their expenditures. Finally, considering regional experience, econometric and descriptive results, this study recommends that the government and the concerned policy maker could undertake:- the government should give more attentions to service sector, supported those self-employee and daily laborer, make awareness to the society about COVID-19 epidemic, place alternative mechanism to fill potential trade gaps.
    VL  - 10
    IS  - 2
    ER  - 

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Author Information
  • Department of Economics, College of Business and Economics, Samara University, Samara, Ethiopia

  • Department of Economics, College of Business and Economics, Samara University, Samara, Ethiopia

  • Department of Economics, College of Business and Economics, Samara University, Samara, Ethiopia

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