The relations between trade volume and political relations: Example of Türkiye and Ethiopia

Abstract

The relationship between political relations and mutual trade is one of the most critical topics for policymakers. It would not be surprising to see that developing relations between countries enables the development of international trade. This paper posits that developing political relations enables an increase in trade volume. By signing agreements involving military cooperation, having reciprocal visits entails national companies to trade with new partners, as well as attracting the interest of investors. In this context, Türkiye’s international relations with Ethiopia are examined, and its effects on the trade volume will be investigated. While conducting this analysis, available data will clarify our premises. The findings reveal that developing political relations has an impact on increasing trade volume between countries.