DETERMINANTS OF VOLUME FLUCTUATION IN ARICULTURAL EXPORT IN ETHIOPIA

Abstract

This study tries to assess the determinants of fluctuation in the volume of agricultural export in Ethiopia. Today’s theories of economic development emphasize improving export performance as a vital component to international competitiveness and rapid growth and development. The main problem that this study tries to address is why the Ethiopian Agricultural product 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, the country exports are agricultural products, but the sector is characterized by its volatility from year to year instead of achieving its targeted level. The objective of the study had conducted to identify the major determinants of fluctuations in the volume of agricultural crop export in Ethiopia, to examine to what extent infrastructural issues determine agricultural exports, to determine the effect of government policy on export volume, to assess to what extent product quality determines agricultural export and to examine the extent of financial support determine agricultural export. In order to analyze the determinants of agricultural export volume fluctuations explanatory research design were employed and for the purpose of this data were collected from 99 exporters and 10 government professionals. Collected data’s were analyzed through descriptive analysis method and econometrics analysis specifically the researcher use ordered legit regression. The findings of the study revealed that infrastructure, government policy, quality, and finance had a positive effect on export of agricultural products; whereas, domestic price shows a negative association with export of agricultural exports volume. Therefore, in order to make Ethiopian export products competitive in the world market, special attention should be given to the issue of quality through better quality standardization system, effective export policy implementation, infrastructural and credit facilities should be improved.