Browsing by Author "Getachew, Virga Belete"

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    Determinants of Cut-Flower Export Supply of Ethiopia: A Panel Data Evidence
    (A.A.U, 2009-06) Getachew, Virga Belete; Dr. Girma, Estiphanos
    This study generally aims at investigating the basic factors behind the recent pelformance of Ethiopian cut-flower exports. Efforts are made to check whether factors of production and market and sector-specific incentives affect export supply, and to compute short-run and longrun elasticities. A one way error-component panel data model, based on data of 33 exporting farms from 2005 through 2008, is estimated. Random-, fixed- and between-effects estimators are fit to respectively capture over-all, short-run and long-run determinants and elasticities. The descriptive analysis shows that the recent growth of Ethiopia 's cut-flower exports is notable and can be explained by farms' use of more land under greenhouse cover. The econometric estimations generally reveal that both price and non-price factors explain cut-flower export supply. Land under greenhouse cover is found a strong determinant in all of our estimations. Infrastructure and transportation costs in the short-run and real exchange rates and hired labor in the long-run are additional important factors. All in all, cut-flower export supply is determined significantly by relative prices, land, labor, sector-specific infrastructure and unit costs of transporting flowers to major international markets. Being a foreign investor and association membership do not significantly affect export supply. Coefficients are found elastic for land, infrastructure and transportation costs, and inelastic for others. The results call forth strong efforts to fight inflation; reasonable worker payment, safety and training; continual follow-up of farms for effective and sustainable land use; and adequate infrastructural development.