| Abstract: | This study was purposed on informing future trade policy decisions on how
the sesame seed export can be improved in both volumes and value of
exports. To achieve this, effort was made to identify and assess the
magnitude and effects of key determinants of sesame seed exports from
Ethiopia for the period 1970-2013 both in the short run and long run. The
study involved separate consideration of value and volume of exports as
explained variables, and sourcing of ways by which beneficial implications
noted could be maximized for both variables, while minimizing adverse ones
in the process .This study solely involved the use of secondary data obtained
from different sources. Separate equation with value and volumes of exports
as explained variables were estimated using Johansen cointegration and error
correction method (ECM) for long run and short run relationship
respectively. All descriptive and econometrics analysis were done through
EVIEWS 5. Finally, both the short run and long run equation was tested for
appropriate standard Gaussian assumptions, appropriateness of specification
and stability of coefficients. Various factors were found to have a significant
impact on values and volumes of sesame seed export amongst which:
domestic production of sesame seed, terms of trade, net inflow of FDI were
positively related in the long run. But, real effective exchange rate negatively
related with both values and volumes of sesame seed. Export price of sesame
seed only affected export values of sesame seed in the long run. The error
correction term has also indicated that the short run equilibrium quickly
reverted to the long run equilibrium for both values and volumes of export.
The identified determinants have provided a guideline for future trade
promotion in the sector. Accordingly, future strategy required to increase
sesame seed export was recommended. |
