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Competitiveness and Determinants of Coffee Exports, Producer Price and Production for Ethiopia

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Author Info

  • David BOANSI

    ()
    (Department of Agricultural Economics and Rural Development,Corvinus University of Budapest, Hungary)

  • Christian CRENTSIL

    ()
    (Graduate Institute of International Development and Applied Economics,University of Reading, UK)

Abstract

This study analyzed the performance and determinants of coffee exports, producer price and production for Ethiopia. The Revealed Comparative Advantage and Revealed Symmetric Comparative Advantage measures of competitiveness used for the performance analysis show that even though Ethiopia has comparative advantage in export of coffee, the same cannot be said of its overall performance on the international market owing to challenges with management of price risk, high transaction cost resulting from the extensive nature of the supply chain and the numerous actors and processes therein, challenges with quality control, low productivity of growers' fields, and incidence of smuggling. To improve upon its export performance and ensure continuous growth in its exports, prices and production, we propose investment in yield-enhancing innovations, devising and implementation of measures to improve quality control in the supply chain, address issues with price risk, minimize incidence of smuggling, minimize transaction costs, increase and ensure continuous government support to the subsector, hold onto the current devaluation of the Ethiopian birr, ensure payment of fair prices to growers and appropriately transmit future increments, increase current area under cultivation to enhance efficient utilization of the abundant labor, and to attract more export-oriented foreign direct investments (to enhance trade creation).

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Bibliographic Info

Article provided by ASERS Publishing in its journal Journal of Advanced Research in Economics and International Business.

Volume (Year): 1 (2013)
Issue (Month): 1 (August)
Pages: 31-56

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Handle: RePEc:srs:jareib:4:v:1:y:2013:i:1:p:31-56

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Web page: http://asers.eu/journals/jareib.html

Related research

Keywords: competitiveness; supply chain; determinants; export; producer price; production;

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  1. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
  2. Worako, Tadesse Kumma & van Schalkwyk, Herman D. & Alemu, Zerihun Gudeta & Ayele, Gezahegne, 2008. "Producer price and price transmission in a deregulated Ethiopian coffee market," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(4), December.
  3. Boansi, David, 2013. "Export performance and macro-linkages: A look at the competitiveness and determinants of cocoa exports, production and prices for Ghana," MPRA Paper 48345, University Library of Munich, Germany.
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