Factors Affecting Export Performance: the Case of Oil Seeds Export in Ethiopia

Abstract

Exporting plays a vital role in economic development of a nation as well as for the development of the particular exporting company. In addition, today’s theories of economic development emphasize improving export performance as a vital component to international
competitiveness and rapid growth and development. Hence, the modern ideas of economic development became ‘export or perish’. The main problem that this study tries to address is why the Ethiopian export trade performance is unsatisfactory in spite of its long-time entrance into the international market and the paradox that Ethiopia has a capable labor force, low wage rate, a wide range of weather and soil conditions, and preferential access to major world markets. This study is aimed to assess the Ethiopia’s export performance and to identify major factors affecting export performance in Ethiopia over the period of 2010-2019 consecutive years. Researcher has used descriptive and analytical research design by collecting primary data from Exporters and secondary data from annual reports of Ministry of Trade and Industry over the period 2010 to 2019, after data collection, employed both descriptive and analytical research design for the purpose of assessing and find out that factors affect that export performance of oilseed export in Ethiopia. The major challenges, which are the researcher, concluded that among the explanatory variables included in the model Competitiveness, access international market, domestic price and international price, exporter’s capacity and macro-economic factor except supply factor were the most significant challenges to affect the export performance. In additions, among the variable’s competitiveness, exporter’s capacity and supply factors has negative and significant relation with oilseed export performance. Therefore, to minimize these problems in addition to the existing policies and regulation, the government need to address additional and revised policies and regulations by considering the dynamic global market conditions, as much as possible infrastructural expansion, the government to explore new markets, provide technical supports. Accordingly, conclusions and recommendations have been made focusing on improvements to be made on competitiveness, exporters’ capacity, market access and supply factors in order to improve the performance of Ethiopian export trade.