Case study on pricing policy in Ethiopia

Abstract

Prices in a centrally planned economy are mainly used as policy instruments for achieving planned goals. Thus, prices can be used for the purposes of control and evaluation and distributing income. Prices in mixed economies such as that of Ethiopia can play both the allocative and the instrumental role. This study will be limited to prices of imported and locally manufactured goods and of domestic and export crops. Relative emphasis will be placed on agricultural prices. The study will be preceded by a brief discussion of the state of the Ethiopian economy which will be followed by consideration of general price levels. Relative emphasis will be given to the pricing of agricultural products.