Determinants of Cut-flower Export Supply

The various measures of external trade performance of sub-Saharan Africa are almost always disappointing and Ethiopia has not been an exception. Foreign exchange earnings have been highly concentrated only on a few traditional items, particularly coffee. Recently, however, diversification to non-traditional exportables like flowers has been observed. Following only Kenya and Zimbabwe, Ethiopia was the third major African cut-flower exporter in 2007. It has also diversified its destinations. The question is: what are the contributing factors for such a 'boom'? This monograph, after descriptively analysing the recent performance of the cut-flower industry, has specified a panel data econometric model to identify the determinants. The debating theoretical and empirical issues in primary export supply since long are also exhaustively reviewed. The monograph benefits grower exporters of cut-flowers, besides policy makers, by informing them the extent to which internal and external economic developments affect export success. Believed to be the first in applying panel data econometrics to cut-flower export supply analysis, it may also be quite helpful to academicians and researchers.