The primary objective of this empirical research paper is to examine the effects of trade openness on Ethiopia's economic growth using time series data from 1981 to 2017. We employed an instrumental variable estimation method of two-stage least squares (2SLS) to address econometric challenges related to endogeneity biases in explanatory variables. The logarithmic form of total GDP is taken as a proxy for economic growth, while trade openness, the share of foreign direct investment in GDP, the logarithmic form of total investment share in GDP, the enrollment rate as a proxy for human capital, and the logarithmic form of the economically active population are used as explanatory variables. The results of the empirical estimation imply that there is a negative and significant effect of trade openness on Ethiopia's total GDP. The findings of this research paper also indicate that the logarithm of investment, human capital, and the working population have positive and significant impacts on Ethiopia's total GDP, while foreign direct investment has negative effects.