DETERMINANTS OF ETHIOPIAN EXPORT: AN EVIDENCE FROM ETHIOPIA HORSE BEAN

Abstract

The recent trend of horse bean export indicated that the export volume of horse beans was 34,153 tonnes and 39,326 tonnes during the periods 2006 and 2007 respectively. According to NBE 2007/08 annual report, out of 14.2% export market share of Africa, the three neighbouring countries Sudan, Somalia and Djibouti consists about 88.3%. (NBE, 2008). Most of the research works on assessment of factors influencing exports performance have been done so far focused on developed nations and other developing countries where their domestic exporters, policy, marketing and other environmental conditions are quite different from our country. Quantitative approach was applied in conducting the study. To determine the factors that influence the export performance of domestic Horse bean manufacturing firms, the study used a descriptive and explanatory type of research design were employed. Primary data was used to attain the study goals. The primary data collection was obtained through questionnaire. The questionnaire was administered to the managers of horse bean exporting firms and employees. Convenience method is used to identify the areas of the study where sample exporters are residing. Hence Addis Ababa was selected as target using convenience method of sampling. A sample of 50 exporters, that is 57% of the target population, have been taken using random sampling technique as primary sources of information to be interviewed using structured questionnaire. Correlation and a regression analysis were conducted to investigate the most important questions to the objectives of this study and to arrive at the core findings of the study with regards to the hypotheses forwarded. The finding confirmed that these independent variables are the determinant factors for the growth of export to local Horse bean exporting firms in Ethiopia. Product quality and capital are more determinant factors for the growth of export performance. On other hand, global competition has insignificant effect on export. The researcher recommends that to increase the competency of local Horse bean firms in the international market, it is recommended that firms have to improve their product quality, export knowledge, and technological capability on their side. On the other hand, the government has to introduce special incentives that promote the export exporting industry in terms of finance accessibility and promotional support