Study on Export Competitiveness Factors for Ethiopian Clothing Industries

Shalemu Sharew Hailemariam

Abstract


Abstract

Clothing Industries in Ethiopia will have a paramount contribution to upgrade the economy of the country mainly due to availability of cheap labor preferential markets and industrial development strategy. Despite the above opportunities, clothing export in the country is insignificant as compared to other African countries. The research objective is to identify factors that affect export competitiveness of Ethiopian clothing industries. The research focuses on sector wide external factors beyond individual firm’s scope. Data was collected from primary and secondary sources to investigate the external factors that affect export competitiveness of Ethiopian clothing sector. The researcher find out loose supplier’s integration, low access to inputs locally, limited market linkages and high trade cost due to lack of port facilities and complex customs procedures could challenge the export competitiveness of Ethiopian clothing industries. On the other hand political stability and safe investment climate has better contribution for clothing exporters. In general high trading cost due to the above limitations made the industry less competitive in export market.

Keywords: External factors, Clothing industry, export, competitiveness and labor

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