DETERMINANTS OF PULSE EXPORT PERFORMANCE IN ETHIOPIA

Abstract

Pulses are important crops for national consumption and export. Ethiopia ranks 7th in world by exporting pulse and have also an opportunity to produce and export more. The performance of pulse export and total production is increasing from year to year. Thus, the purpose of this study was to investigate the determinants of pulse export performance in Ethiopia, with the specific objectives to examine the determinants of pulse export performance and to assess the relationship between export performance and its determinants. 19 years’ time series data ranged from 2000 to 2018 were employed to address the objectives of the study. Ordinary least square model was used to estimate the regression. The findings of the study shows that pulse export had shown an increasing trend between the anticipated years; within this all year on average the country was generating 22.4 million Birr from pulse export. Also the trends of pulse area coverage and production had an increasing trend and the average yearly pulse production was 48135 tons. In addition to this, the country’s foreign direct investment had an increasing trend with average yearly investment of 1.14 billion birr. Interest rate and inflation was also shows an increasing trend. The findings of the study further shows that total production, interest rate and exchange rate had significant effect on export performance. One variable had not significant effect. Two variables total production and exchange rate had positive and significant effect on the export performance of the country; on the other hand the national interest rate had negative effect on the export performance of the country. The study revealed that total production of pulse had a significant and positive effect on the export of pulse which indicates that the pulses sector can be developed to benefit from existing production knowledge and potential. The policy focus in past years has been primarily on coffee and sesame; however, the pulses sector offers similar potential as an export crop which should get more attention by policy makers.