TRENDS AND DETERMINANTS OF HIDES AND SKINS EXPORT PERFORMANCE OF ETHIOPIA

Abstract

Despite owning the largest livestock resources in Ethiopia, the export performance of hides and skins have not yet reached the desired stage of development due to several factors and constraints. The major objective of this study is therefore to investigate factors that determine hides and skins export performance of the country by analyzing data for the period from 1975- 2014G.C. This study also tried to review the export performance; trends and production of Hides and skins export and examine the long run and the short run determinants of export performance of Ethiopia. The data collected from NBE, CSA, ERCA and WB and WDI were analyzed for long run and short run estimates using Johansson cointegration and Vector Error Correction approaches. The findings of the study revealed that in the long run export performance has found to be positively influenced by real effective exchange rate, RGDP of trading partner and infrastructural development. The RGDP of Ethiopia has found to be negatively affecting this sector. Hence, the long run elasticities of export performance with respect to real effective exchange rate, RGDP of Trading partner, infrastructural development and RGDP of Ethiopia were 2.9, 4.4, 2.4 and -1.25respectively. In the short run only last year RGDP of Ethiopia and Expenditure on transport and communication has directly involved in enhancing export performance of current year. improving livestock production mechanism, increasing demand for meat, maintaining high and sustainable economic growth and improvements in infrastructural facilities should due emphasis so as to improve Ethiopia's hides and skins products export performance. Key words: ,