Determinants Of Market Efficiency Of Commodity Exchange: The Case Of Ethiopian Commodity Exchange
No Thumbnail Available
Date
2018-09-20
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The Ethiopian Commodity Exchange was established to revolutionize Ethiopian agriculture and transform the economy through a dynamic, efficient and transparent marketing system. Properly implemented and regulated, commodity exchanges can contribute greatly to the achievement of country’s economic and developmental goals and strengthen the bargaining power of participants. Hence the overall objective of this study is to examine the determinants of market efficiency of Ethiopian commodity exchange. And the variables that examined were market information system, quality grading and sampling, clearing and settlement, risk management, and price discovery. A survey questionnaire were prepared to collect a primary data, secondary data from the books and documents of the ECX and other sources were also used to augment the primary data. The researcher distributed to 186 people personally. Out of the total questionnaires distributed, 176 were considered valid for analysis from Ethiopian commodity exchange participants or members selected through random sampling. And the data was analyzed through descriptive analysis and binary regression model by using of SPSS version 20. The findings show that all the dimensions of Market Efficiency have a positive significant influence on commodity exchange. Therefore, study recommended that ECX should give more attention about market information, quality grading and sampling, clearing and settlement, risk management and also price discovery system of the company.
Description
Keywords
Market information, quality grading, sampling