Factors Affecting Export Performance of Sesame Seeds: the case of Ethiopia

Abstract

Export is the crucil economic sector to ones country. For the developing ethiopia and a country which has oil seeds potential, it is worth important to study the factors that affect export performance of sesame. The main objective of this thesis was to gain clearer understanding of how different factors affect export performance of oil seeds (sesame) and to realize the interaction of these two variables so as propose a workable marketing modality to better perform in the sesame business. For this study, five variables were considered as independent variables and one variable was considered as dependent variable. Inflation, exchange rate, trade openness, interest rate, and production volume were the independent variable where as export performance is the dependent variable. To analyse the data with these variables, distribution error test, multicollinearitytest,and multiple regression were employed using SPSS. As a result, trade openness is not significant factor affecting export performance, revenues generated from seasame export where as the rest 4 variables, inflation, interest rate, exchange rate and production volume were found affecting export performance of seasame.After the backward regressin analysis based on the tests, the optimal model selected is with one independent variable, exchang rate, which shows positive relationship with and has significant influence on export performance in terms of revenues.Finally, the study concluded the relationship between exchang rate and export performance is positive and the extent of relationship is high, which shows exchang rate is the major significant determinant of export performance.Based on the study result, the researcher suggested that government has to take concrete measures on exchange rate to the reasonable level by enhancing production,devaluation of birr, increasing savings, controlling prices, managing credit and decreasing unnneccessary expenditures & debts among crucial ones.