Determinants of Market Efficiency of Commodity Exchange: Evidence from Ethiopian Commodity Exchange
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Date
2023-03
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Addis Ababa University
Abstract
The Ethiopian commodities exchange was founded to modernize Ethiopian agriculture and restructure the economy. Commodity exchanges can significantly help in the attainment of a nation's economic and developmental goals and increase the bargaining power of participants when implemented and regulated properly. The overall objective of the study was to investigate determinants of market efficiency in Ethiopian commodity exchange. Primary and secondary data were used to attain the purpose of the study. The researcher disseminated to 283 questionnaires personally. Out of the total questionnaire disseminated, 270 were considered valid for analysis from Ethiopian commodity exchange participants or members selected through random sampling. The data was analyzed through descriptive and inferential statistical analysis using SPSS version 26. The descriptive data was analyzed via mean, freq, %, standard deviation and figures while the inferential statistics analysis was analyzed using correlation and regressions. The finding of the study revealed that transaction cost, clearing and settlement service, trust and market information system have a significant effect on the market efficiency of Ethiopian commodity exchange. The study concluded that the market efficient of Ethiopian commodity exchange has found in a good condition to attain the national development. The study recommends that the Ethiopian commodity exchange collaborate with trade members in order to enhance the marketing efficiency of commodity exchange
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Keywords
Electronic trading, Market information system