FACTORS INFLUENCING SESAME EXPORT PERFORMANCE IN ETHIOPIA

Abstract

Main objective of this thesis was investigating factors influencing sesame export performance in Ethiopia. Most of the reviewed studies indicate that export is one of the accelerating factors for economic growth although it shows low performance in Ethiopia. Ethiopia exports mainly primary agricultural products which mostly produced in traditional way. One of the most exporting items in Ethiopia is sesame product. The reviewed studies focused on domestic market but not as such assessed the sesame export related problems. The researcher observed the gap of the studies to identify the major determining factors related to the sesame export performance in Ethiopia. Consequently; specific objective of this thesis was intended to investigate determining variables related to export market activities and policy issues and nature of relationship to the sesame export performance in Ethiopia. This research is both descriptive and inferential research type which approached qualitatively to collect qualitative data from respondent using structured questionnaires and some open ended interview questions. The researcher of this thesis selected ten variables and used Likert scale type data measurement techniques and multiple regression models. All necessary tests such as reliability, multiple regression assumptions test, and null hypothesis test and over all significance of the model test were taken place to identify the significance of predictors and over all significance of the mode. As a result, out of ten explanatory variables seven variables such as promotion, technology, policy incentives, and cost of export, marketing strategies, price and quality of the exported product were the most determining factors to affect the sesame export performance. There are also few variables such as marketing information, infrastructure and bureaucracy for the process of export, identified as less determining factors to the dependent variable. In addition, the standardized coefficient of the estimated βs was best estimator of the true βs of the population parameters and the model was specified properly. Finally, the study was concluded that promotion, technology, cost, marketing strategies, policy incentives to the sector, price and quality were the main factors determining the sesame exporting performance. Based on the study result, researcher put his recommendation that exporters must be strategic to use promotion, minimize cost, and use technology for quality improvement and to search better market and price for the product. Also the government on its side has to be committed to support the sector investing to upgrade the policy incentives like credits and other incentives to the sector. Moreover, the government must strengthen trade relationship with potential importers. In addition, the researchers are suggested that further researches must focus on the problems associated to market channels and intermediating institutions to improve the benefits from the market.