KHAT MARKETING AND ITS EXPORT PERFORMANCE IN THE ETHIOPIAN ECONOMY
Abstract
The major aims of this paper were to assess Khat marketing and its export performance in the Ethiopian economy. The study used secondary data collected from different organizations. The data were analyzed using both descriptive and econometric methods. Descriptive study showed that the crop had crucial importance for the economy as a whole and the producers. The crop can also be cultivated by mixing with other crops and the production varied from region to region. The production was expanding rapidly in some regions of the country due to the high-income elasticity of plants than another crop. On the other hand, the plant was seen as socially undesirable in some parts of the country due to its social ill. Also, the crop has several adverse effects on both social and socioeconomic factors of a country. AS a result, the different country attempted to impose restrictions. On the other hand, econometric analysis result found that per capita income of importing country and real effective exchange rate were the most important factors which significantly affected Khat export in the long run in Ethiopia. Finally, the study recommended that there should be an appropriate policy towards the restrictions of further Khat expansion because it harboured considerable social and economic risks to the country.
Keywords: Ethiopian economy; Export performance; Khat; Khat export; Khat marketing
CITATION: Tolcha, P. T. (2020). Khat marketing and its export performance in the Ethiopian economy. The Strategic Journal of Business & Change Management, 7(2), 58 – 69.
Full Text:
PDFReferences
Abdurahman A. (2004) the Economic of Khat Production and Marketing, Case Study from Eastern Ethiopia
Alemu et al., (2018) Performance of Snap Bean (Phaseolus vulgaris L.) Genotypes for Green Pod Yield and Quality in the Central Rift Valley of Ethiopia. Greener Journal of Plant Breeding and Crop Science Vol. 6(1), pp. 001-006, January 2018
BBC (2014). Stimulant Khat banned as illegal class c drug in the UK. Retrieved from http://www.bbc.com/news/uk-wales-south-east-wales-27991393
Belwal R, Teshome H. Chat exports and the Ethiopian economy: Opportunities, dilemmas and constraints. African Journal of Business Management May 4, 2011; 5(9): 3635-3648.
CSA (2017): Agricultural sample survey 2016/2017, Vol. 1: Area and production of major crops. Addis Ababa: Central Statistical Agency, FDRE
Drug Enforcement Agency. (2017). Drugs of Abuse: A DEA Resource Guide (p. 8, 53).Washington, D.C. Retrieved fromhttps://www.dea.gov/pr/multimedialibrary/publications/drug_of_abuse.pdf
Dechassa L. (Agriculturalist) (2001): Khat (Catha edulis): Botany, Distribution, Cultivation, Usage and Economics in Ethiopia
Feyisa, T., & Aune, J. (2003). Khat expansion in the Ethiopian highlands: Effects on the farming system in Habro district. Mountain Research and Development, 23(2), 185–189.
Gebissa, E. 2004. Leaf of Allah: Khat and agricultural transformation in Hararghe, Ethiopia, 1875-1991. James Currey.
Gebissa, E. 2008. Scourge of life or an economic lifeline? Public discourses on Khat (Catha edulis) inEthiopia. Substance Use & Misuse 43: 784-802.
Gemechu D. (2002): Exports and Economic Growth in Ethiopia: An Empirical Investigation. Paper Presented for the First International Conference on the Ethiopian Economy
Groume A. (2008). “Ethiopian Postal Service to Launch Khat memorial Stamp”. The Capital.
Global Legal Research Center. (2015). Legal Status of Khat in Selected Jurisdictions (pp. 1–5). Washington, D.C.: The Law Library of Congress. Retrieved fromhttps://www.loc.gov/law/help/legal-status-of-Khat/legal-status-Khat.pdf
Lautze S., AkliluYacob, Raven-Roberts. A Young H., Kebede Girma, Leaning J., 2003. Riskand vulnerability in Ethiopia: learning from the past, responding to the present, preparing for the future. A Report for the U.S. Agency for International Development
NBE [National Bank ofEthiopia] (2017). Annual report 2016/17. Addis Ababa: National Bank of Ethiopia.
Getahun, S. (2014). The contribution of export earnings to the economic growth of Ethiopia: a trend analysis.
Survey of the Ethiopian Economy II (2005), Review of Development during 1998/99-2003/04. A Publication of the Development Planning and Research Department, Ministry of Finance and EconomicDevelopment (MoFED).
Tesfa B. (2017) The Expansion of Production, Marketing and consumption of Chat in Ethiopia: International Journal of Research in Agriculture and Forestry at http://dx.doi.org/10.22259/ijraf.0403003
Tesfaye Lemma, J. Kirsten and S. Perret, 2003. Market Incentives, Farmers’ Response and A Policy Dilemma: A Case Study on Expansion of Chat Production as a Cash Crop in the Eastern Ethiopian Highlands. Alemaya University, Ethiopia and University of Pretoria, South Africa World Health Organization Expert Committeeon Drug Dependence, 34th report, Geneva, 2006
UN Publication (2004), An Investment Guide to Ethiopia: Opportunities and Conditions. March 2004, p.23 iteiia20042_en.pdf
Wooldridge, J. M. 2002. Introductory Econometrics: A Modern Approach. South-Western College Pub, Cincinnati, OH.
Yeraswork A. The Khat Conundrum in Ethiopia: Socioeconomic Impact and Policy Directions. Addis Ababa; Forum for Social Studies, 2017
DOI: http://dx.doi.org/10.61426/sjbcm.v7i2.1608
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.