World Transport Services: Ethiopia’s 78.7% (Commercial Services Ratio) Reflects Economic Reliance

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Abstract

Ethiopia’s high share of transportation services in commercial services at 78.7% in 2023 reflects a significant reliance on transport infrastructure for economic activity. Historically, nations with lower industrial diversification often show higher ratios in transportation services due to the need for robust logistics for exports, particularly in landlocked countries. Ethiopia’s position is shaped by its reliance on transit routes for goods, especially in agriculture and textiles. This trend highlights the importance of efficient transport systems for economic growth in developing regions.

Transportation services (commercial services ratio)

Oman’s peak transportation services ratio of 100% in 1978 was a unique reflection of its reliance on shipping and port services during that period. Over the decades, this ratio has declined to 33.4% in 2023, signaling a shift in the economy from service-based exports to a more diversified industrial and economic base. The decline also reflects global changes in trade patterns, with many countries developing broader service sectors. Oman’s current ratio still highlights its strategic location as a key regional transport hub but with reduced dominance in global commercial transport services.

Transportation services (commercial services ratio)
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The maximum is 100%[1978] of Oman, and the current value is about 33.4%

Transportation services (commercial services ratio) (worldwide)

Oman’s transportation services ratio peaked at 100% in 1978, reflecting its vital role as a global maritime hub with a focus on port services and shipping. Over the years, the ratio has decreased to 33.4% in 2023, as Oman’s economy diversified beyond transport services, incorporating oil, gas, and industrial sectors. This trend mirrors broader global shifts, where many economies have expanded service industries while reducing reliance on transport services alone. Oman remains a key regional logistics player, but its global transport dominance has lessened as trade patterns evolved.

Transportation services (commercial services ratio) (worldwide)
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The maximum is 100%[1978] of Oman, and the current value is about 33.4%

Transport services (vs commercial services) (Worldwide, latest year)

In 2023, Ethiopia’s transportation services ratio reached 78.7%, far surpassing the global average of 20.8%. This high ratio reflects Ethiopia’s significant dependence on transport services for its economic activities, particularly as a landlocked country reliant on transit routes for exports like agriculture and textiles. The global total ratio of 2.31k% underscores the broad participation of countries in transportation services but with varying reliance. Ethiopia’s trend highlights its strategic need for transport infrastructure, which is crucial for its export-driven economy and regional connectivity.

Transport services (vs commercial services) (Worldwide, latest year)
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The maximum is 78.7% of Ethiopia, the average is 20.8%, and the total is 2.31k%

Transport services (commercial services) (region, latest year)

In 2023, Europe and Central Asia led the world with a transportation services ratio of 32.8%, reflecting the region’s strong export of industrial and high value-added goods, such as automobiles, machinery, and chemicals. This high share underscores the significant role transportation plays in supporting economic activity, particularly in Europe. With a global average of 20.1%, Europe and Central Asia’s higher ratio highlights its advanced industrial economy. As the region continues to industrialize, the demand for transportation services grows, fueled by infrastructure development and logistics advancements. This trend is expected to strengthen as the region invests in innovation to meet the demands of advanced product transport.

Transport services (commercial services) (region, latest year)
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The maximum is 10.2% of North America, the average is 10.2%, and the total is 10.2%

Reference

The World Bank – Transport services (% of commercial service exports)

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