Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application

Fisseha Seyoum

doi:doi:10.11648/j.ijfbr.20210705.11

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Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application

Fisseha Seyoum

Published in International Journal of Finance and Banking Research (Volume 7, Issue 5)

Received: 10 May 2021 Accepted: 18 August 2021 Published: 23 September 2021

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Abstract

In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.

Published in	International Journal of Finance and Banking Research (Volume 7, Issue 5)
DOI	10.11648/j.ijfbr.20210705.11
Page(s)	101-110
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Gravity Model, Flower, Export, GDP, Exchange, Ethiopia

References

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APA Style

Fisseha Seyoum. (2021). Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. International Journal of Finance and Banking Research, 7(5), 101-110. https://doi.org/10.11648/j.ijfbr.20210705.11

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ACS Style

Fisseha Seyoum. Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. Int. J. Finance Bank. Res. 2021, 7(5), 101-110. doi: 10.11648/j.ijfbr.20210705.11

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AMA Style

Fisseha Seyoum. Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. Int J Finance Bank Res. 2021;7(5):101-110. doi: 10.11648/j.ijfbr.20210705.11

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@article{10.11648/j.ijfbr.20210705.11,
  author = {Fisseha Seyoum},
  title = {Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application},
  journal = {International Journal of Finance and Banking Research},
  volume = {7},
  number = {5},
  pages = {101-110},
  doi = {10.11648/j.ijfbr.20210705.11},
  url = {https://doi.org/10.11648/j.ijfbr.20210705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20210705.11},
  abstract = {In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.},
 year = {2021}
}

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TY  - JOUR
T1  - Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application
AU  - Fisseha Seyoum
Y1  - 2021/09/23
PY  - 2021
N1  - https://doi.org/10.11648/j.ijfbr.20210705.11
DO  - 10.11648/j.ijfbr.20210705.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 101
EP  - 110
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20210705.11
AB  - In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.
VL  - 7
IS  - 5
ER  -

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Fisseha Seyoum

Department of Agricultural Economics and Agribusiness Management, Haramaya University, Haramaya, Ethiopia

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APA Style

Fisseha Seyoum. (2021). Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. International Journal of Finance and Banking Research, 7(5), 101-110. https://doi.org/10.11648/j.ijfbr.20210705.11

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Fisseha Seyoum. Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. Int. J. Finance Bank. Res. 2021, 7(5), 101-110. doi: 10.11648/j.ijfbr.20210705.11

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AMA Style

Fisseha Seyoum. Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application. Int J Finance Bank Res. 2021;7(5):101-110. doi: 10.11648/j.ijfbr.20210705.11

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@article{10.11648/j.ijfbr.20210705.11,
  author = {Fisseha Seyoum},
  title = {Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application},
  journal = {International Journal of Finance and Banking Research},
  volume = {7},
  number = {5},
  pages = {101-110},
  doi = {10.11648/j.ijfbr.20210705.11},
  url = {https://doi.org/10.11648/j.ijfbr.20210705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20210705.11},
  abstract = {In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application
AU  - Fisseha Seyoum
Y1  - 2021/09/23
PY  - 2021
N1  - https://doi.org/10.11648/j.ijfbr.20210705.11
DO  - 10.11648/j.ijfbr.20210705.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 101
EP  - 110
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20210705.11
AB  - In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.
VL  - 7
IS  - 5
ER  -

Copy | Download