Determinants Of Spice Export Performance In Ethiopia
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Date
2020-06
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Addis Ababa University
Abstract
Ethiopia is home to many spices, and due to its ecological richness, the country is suitable for growing 60–100 species and the sector has been the important source of foreign currency to the country. However, the sector failed to achieve its contribution to the overall export performance of the country in the first GTP period. This study aims to shed light on the determinants of export marketing performance with special emphasis on Ethiopian firms engaged in exporting Turmeric, Dry Ginger, Black cumin and Coriander spices and members of the association. For this purpose, a descriptive study was undertaken with a sample size of 140 respondents as a sample by using convenience sampling technique. Besides multiple regression analysis is conducted to understand the relationship of dependent and independent variables. The research design type is explanatory and studied variables include; both internal and external marketing factors. Consequently, internal factors were found to have significant effect on the dependent variable, Export performance. Hence, it is revealed by the study that Nature of the Product and Marketing strategy of the firm has substantial degree of positive correlation with spice export firms’ performance, Managerial Quality has strong positive correlation with spice export firms’ performance. However, Nature of the market has a weak correlation with export performance and government policy and regulation have a negative correlation with firms’ export performance. Hypothesis test result: Since the concern of this study is on testing the multiple determinants of Spice export firms’ performance, except the Government Policy and regulation and Nature of the market related factors, the other determinants shall be supported. Hence, it is recommended that Government shall support and the exporters shall have strong union so as to work together and other monetary and fiscal policy measures be taken to encourage exporters to make them more competitive.
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Determinants, Export Performance, Internal Factors