The analysis of entry of Ethiopian enterprises into the export-markets and the associated factors

Abstract

Purpose Though many studies in the past dealt with the survival and growth of enterprises both in the local- and export-markets, less attention was given to the analysis of the duration of enterprises entry into the export-markets. The aim of this paper is, therefore, to analyze the duration of Ethiopian enterprises entry into the export-markets. Design/methodology/approach This paper used data collected from 848 enterprises through a cross-sectional survey method conducted by the World Bank in 2015. In order to estimate the average duration – the time that enterprises need to wait before entering into the export-markets and the associated factors – the authors used the mixture of non-parametric (Kaplan-Meier) and parametric (Weibull) models. Findings The non-parametric results show that enterprises are required to wait for an average of about eight years before entering into the export-markets after their establishment. In addition, foreign-owned enterprises were found to be faster in entering into the export-markets than their domestically owned counterparts. The parametric results revealed that enterprises’ product innovation, enterprises’ size and age, and custom and trade regulations are factors that curtail the durations of enterprises entry into the export-markets. On the other hand, enterprises’ operational costs, the size of enterprises’ locality, and enterprises’ location are factors that slow the durations of enterprises’ entry into the export-markets. Originality/value This study is the first to offer pioneering evidences on the duration (time in years) that Ethiopian enterprises need to wait before entering into the export-markets and the factors that affect the length of their waiting time.

Durability of Zambia’s Agricultural Exports

“…For instance, the median export duration in Germany is 2 years [10], while it is 1 year in Turkey [11], and 2 years for developing countries [13]. Studies on African countries also affirmed the short lifespan of exports, e.g., Kamuganga [31] for 49 African countries, Cadot et al [32] for Mali, Malawi, Tanzania, and Senegal, Lemessa et al [33] for Ethiopia, Mohammed [34] for Ghana, Zaki et al [35] for Egypt, and Majune et al [36] for Kenya.…”

Explaining Export Duration in Kenya

“…Methodologically, earlier studies on duration applied continuous time models rather than discrete‐time models. Starting with Hess and Person (), discrete‐time models have been a norm in recent export duration studies (see Görg et al , ; Besedeš, ; Görg and Spaliara, ; Fu and Wu, ; Fugazza and McLaren, ; Córcoles et al , ; Gullstrand and Persson, ; Inui et al , ; Chacha and Edwards, ; Cui and Liu, ; Lemessa et al , ; Peterson et al , ; Türkcan and Saygili, ; Goya and Zahler, ; Zhu et al , ). Using the original data by Besedeš and Prusa (), Hess and Person () conclude that discrete‐time models are more efficient than continuous‐time models due to three reasons.…”

Diversification of Fresh Asparagus Exports from Perú

“…The theory of the export-driven economic development vis-à-vis diversification bases on the premise that the diversification of products by the enterprises will reduce the degree of exposition of the company to economic fluctuations. In addition, product diversification endows a business with technology and opportunities of longer terms with their customers (Abdullahi et al, 2021;Damijan et al, 2020;Lemessa et al, 2018).…”