| Abstract: | Textile sector is an industry in which Ethiopia has a competitive advantage. The study found to
assess the impact of imported textile goods on domestic textile industry in Ethiopia. In this study
both quantitative and qualitative research approaches were used. To investigate the impact of
textile import into Ethiopia in terms of price and volume on the domestic textile industry both
primary and secondary data sources were used. The secondary data is a time series data of 16
years collected from Ethiopian Textile Industry Development Institute and the primary data
collected from purposively selected 6 domestic textile factories through the application of open
ended questionnaire to those key informants of the factories. Co –integration and error
correction mechanism were employed to analyze the time series data and simple descriptive
method was used to explain other serious problems faced by domestic textile industries. The
result of the time series data analysis showed that the import volume has negative impact on
domestic textile industry but import price has got positive impact. In addition, the analysis from
qualitative data indicated that lack of skilled workers, poor technology, obsolete machinery,
hard currency shortage, price pressure due to mass textile goods import, and low-tariff textile
import were identified as serious problems the domestic textile industries in Ethiopia are facing.
Reduce the volume of textile and garments imported into Ethiopia, conduct studies to improve
the performance of domestic textile industries, replace old machineries, train manpower by
working with universities and improve infrastructures are policy implications to Ethiopian
government. |
