Factors Affecting The Export Performance Of Textile And Garment Industry; In Ethiopia

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Addis Ababa University


The study has investigated those factors, both external and internal, that affects the export performance of textile and garment sector in Ethiopia using both quantitative (OLS regression and Questionnaire) and qualitative (FGD) method of analysis. The study has revealed that previous years’ economic growth measured by GDP and FDI made has positive impact on the export performance of the sector and the impact is also statistically significant. Furthermore, REER has significant and positive effect on the export performance. The cost of exporting products to various market destinations is costly and as a result the price they set at international market is becoming less competitive. The domestic price for their product is high and profitable. As a result, exporters are reluctant to export their product into international markets. They prefer to sell their product at home than exporting to the rest of the world. Trade and FDI are considered as the main channels of introducing new technology and new knowledge. As a result firms should consider this as an opportunity to adapt new technology and diversify their production. Price adaptation and ability to offer lower prices can positively affect the export performance of firms. Firms should learn from the best performers domestically and internationally.



Ethiopia, Export, Textile