Factors Affecting International Trade Logistics Performance Of Ethiopia

As countries of the world becomes more and more integrated through trade, there is a needrnfor efficient logistic system, in which customers who are interested in products manufacturedrnin another location can quickly find it at low cost. Ethiopia is among the fastest economicrngrowth in the world, but characterized by poor performance of trade logistics measured inrnterms of cost, quality and time. Six factors were identified to measure how these factors affectrnEthiopian trade logistics performance as identified as customs, regulation, port, domesticrntransport service capacity, trade finance, logistics regulation and logistics infrastructure.rnBased on the survey of 361 respondents from key logistics operators, and regulators,rndescriptive, correlation and regression analysis were run to see the effect of these logisticsrnfactors on trade logistics performance. Based on the analysis all the six variables havernsignificant and positive effect on trade logistics performance. The study also recommendsrnimproving the six factors that will ultimately improve Ethiopia’s international trade logisticsrncompetitiveness.

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