Export Barriers and Competitiveness of Developing Economies: The Case of the Ethiopian Leather Footwear Industry

Gebreyohannes Gebreslassie Gebrewahid, Mekelle University

Abstract

This study aimed to investigate the export barriers that hold back developing countries not to be competitive at foreign markets; the case of Ethiopian leather footwear industry. One hundred sampled managers and owners purposively selected from 15 firms. Out of the total sampled respondents, 61 questionnaires, which yield 61%, were properly answered and returned. Interview with top managers and owners carried out for insightful information. The survey data was analyzed using factor analysis and MDS techniques. The factor analysis identified 10 conceptually linked components and factor loadings and factor score coefficient results were used for interpretation. Finding of this study revealed that all barriers were significant however; they have different perceived export barriers intensity on the export competitiveness. Government policy, human resource, product adaption, marketing knowledge and information, financial, exogenous export, competition, logistics and product adaption barriers were significant whereas the environmental barriers was not as such. In the case of MDS, four clusters of firms were formulated with different perceived export barriers intensity. Cluster I, II, III and IV firms were named as competition, logistics, product quality and financial barriers respectively.

 
May 27th, 4:00 PM May 27th, 5:05 PM

Export Barriers and Competitiveness of Developing Economies: The Case of the Ethiopian Leather Footwear Industry

Hall II

This study aimed to investigate the export barriers that hold back developing countries not to be competitive at foreign markets; the case of Ethiopian leather footwear industry. One hundred sampled managers and owners purposively selected from 15 firms. Out of the total sampled respondents, 61 questionnaires, which yield 61%, were properly answered and returned. Interview with top managers and owners carried out for insightful information. The survey data was analyzed using factor analysis and MDS techniques. The factor analysis identified 10 conceptually linked components and factor loadings and factor score coefficient results were used for interpretation. Finding of this study revealed that all barriers were significant however; they have different perceived export barriers intensity on the export competitiveness. Government policy, human resource, product adaption, marketing knowledge and information, financial, exogenous export, competition, logistics and product adaption barriers were significant whereas the environmental barriers was not as such. In the case of MDS, four clusters of firms were formulated with different perceived export barriers intensity. Cluster I, II, III and IV firms were named as competition, logistics, product quality and financial barriers respectively.