| Abstract: | This study tries to assess the level of performance, challenges and prospects of the
Ethiopian export trade from the management point of view and to investigate
the performance of the export operation in a systematical approach. With the
emergence of globalization and liberalization, barriers to cross border for business
are becoming so diminished. Globalization, a trend toward a more integrated and
global economic system, is a challenge that countries have to learn how to live with
it, manage it and take advantage of its opportunities since national economies are
becoming more interdependent and integrated. In addition, today’s theories of
economic development emphasize improving export performance as a vital
component to international competitiveness and rapid growth and development.
Hence, the modern credo of economic development became ‘export or perish’.
The main problem that this study tries to address is why the Ethiopian export trade
performance is unsatisfactory in spite of its long time entrance into the
international market and the paradox that Ethiopia has a capable labor force, low
wage rate, a wide range of weather and soil conditions, and preferential access to
major world markets. The objective is to assess the level of performance, to identify
the main challenges and potentials and to suggest possible remedial actions in
relation to export trade. The methodology used includes survey, interviews and
document review. The scope of the study covers those stakeholders having active
participation in the sector and its limitation is that it is not exhaustive in terms of
data sources and variables of analysis. The study is believed to benefit those
stakeholders in the export sector to see their weaknesses and strengths. Literatures
on both theoretical and empirical aspects have been reviewed. Quality problems,
inefficient management of exporters, inefficient promotion of the export sector, and
low performance of export processing are the main findings of the study.Accordingly, conclusions and recommendations have been made focusing on
improvements to be made on quality, exporters’ capacity, export promotion and
export processing in order to improve the performance of Ethiopian export trade. |
