Browsing by Author "Yimer, Masresha"

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    Analysis of the Performance of Exports and Competitive Advantage for Growth and Development in Ethiopia: The Case of Sesame Seed
    (Addis Ababa University, 2021-11) Yimer, Masresha; Goshu, Andualem PhD
    Based on the general objective of the research to describe and analyze the sesame seeds production, comparative advantage and export trade performance, competitiveness and export potentials of Ethiopia, from the perspective of the global and African regional levels, the study addressed four specific objectives, covering the period 1970 to 2018, by using market share, growth rate and related trade performance indicators, RCA and RSCA, export and import geographic concentration ratios analysis, econometric analysis using the ARDL model, and also carried out assessment of sesame seed export potential by utilizing UNCTAD export potential and gap methodology. For the ARDL econometric model post estimation diagnostic tests were also carried out. Africa’s share of world sesame seed export volume is about 65.5%, the leading exporters and their global export volume share are: Sudan (21.8%), Ethiopia (11.4%), followed by Nigeria (10.6%). Ethiopia’s RCA and RSCA have been higher though showing declines recently. Ethiopia’s leading export destination (61.9%) is China (also the world number one importer) and 20.4% to Israel (the world 6th importer of sesame seed). Ethiopia’s export concentration ratio was a high of 0.33, higher than the global average of 0.11; while the importer’s concentration ratio of the leading importing country, China, was 0.18, indicative of higher number of supplying countries, and implying higher competition in exporting to China. The ARDL econometric model analysis revealed that in both the short run and the long run, EXVAL (sesame export value) and EXVOL (sesame export volume) are affected statistically significantly by GDPeth (positively), REER (negatively), IMPDD (negatively). On elasticity results, both equation 1 (EXVAL) and equation 2 (EXVOL) are highly elastic to three of the four independent variables, namely, GDPeth, REER and IMPDD, both in the short and long run. Regarding Pairwise Granger Causality Test results, while both EXVAL and EXVOL does granger cause GDPeth, reinforcing the importance of export development as engine of economic growth, EXPPPRATIO granger cause EXVAL as well as EXVOL. Besides, EXVAL as well as EXVOL have bi directional causality with REER. Regarding the export potentials, Ethiopia has huge untapped export potential in sesame seeds, with current export to total world potential percentage share at 32.7% - an export untapped potential of 67.3%. Finally, towards maintaining and improving the comparative advantage & boosting the competitiveness of sesame seeds export, the study recommends: expanding sesame seed of production; improving product quality and value additions and the domestic marketing system (including ECX trading system); pursuing export market and product development and diversification; streamlining trade logistical and other domestic cost push factors; addressing the misalignment in exchange rate and the appreciating REER; developing and maintaining highly professional exporter companies, by implementing the identified respective strategies for action
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    Assessment of the Current Status, Challenges and Opportunities for Small & Medium Scale Edible Oil Processors in Addis Ababa, Ethiopia
    (Addis Ababa University, 2021-11) Yimer, Masresha; Haile, Abebe PhD
    This study was carried out with the objective to review the current policies, regulations and practices, current status in the small and medium enterprises (SME) edible oil sub sector, and identify the challenges as well as opportunities for the SME edible oil processing sub sector in Addis Ababa (A. A.), based on a descriptive research design, & using quantitative and qualitative data, from the SME edible oil processors, key informants, pertinent governmental regulatory and support institutions, & Advocacy groups/Associations, by applying the (input-market) value chain approach. The findings of the study indicated that the demand for edible oils was met predominantly through imported palm and non-palm edible oils and insignificant domestic edible oil supply, and distributed through shemachoch retail outlets and private retail shops, and characterized by serious availability and accessibility challenges for consumers in A. A. The major current policies, regulations & practices, challenges and opportunities across the input-market chain of the SME edible oil sub sector in A. A. were assessed & analyzed. The identified major challenges facing the SME edible oil processors in Addis Ababa included: the significantly weakened current status of the SME edible oil processors; edible oil related policies, regulations and practices biases & resulting market distortions, such as import duty and VAT exempted huge import and distribution of palm edible oil, focus of support towards large scale processing; application of VAT tax system on domestic edible oil supply; limitations of palm edible oil in proper household targeting and existence of distribution malpractices, high export orientation of oilseed crops; regulatory requirement for refining of edible oils; the raw material supply (shortages, quality related problems and rising oilseed crops prices), significantly low capacity utilization, much lower than 50%; significant lack of SME edible oil-dedicated technical training, capacity building and related supports and incentives, as well as processing technology & access to financing & infrastructural challenges, …, resulting in the SME edible oil processors’ marginalization and becoming the ‘missing middle’. The identified opportunities included: increasing population, huge domestic consumer demand, economic growth, well-developed experience in A. A. in SME edible oil processing, marketing and consumption in A. A.; Ethiopia as a major grower, and origin, of some of the oilseed crops & its conducive agro ecological condition for oilseed crops production, and overall government policy and commitment for agriculture and agro processing investments. Finally, the study identified recommendations and strategies for action, including implementing institutions, in order to address the pressing lack of SME edible oil dedicated policy support & incentives, edible oil processing, and food safety and quality management capacity building supports, and a conducive overall business enabling environment to enable SMEs in A. A. to survive and grow, and contribute to sustainably increase edible oil availability in A. A., to ensure accessibility at the household level, and to attain adequate food utilization in edible oils at the individual level in A. A., thereby also contributing to the import substitution effort in the country