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Drivers of Quality Problems in the Leather Sector Value Chain in Ethiopia

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  • Gebrehiwot, Berihu Assefa
  • Gebreeyesus, Mulu

Abstract

Ethiopia prioritizes the leather sector. However, the sector has underperformed relative to targets and Ethiopia’s potential. It has been long recognized that the major problem is the quality of raw hides and skins in the Ethiopian leather sector value chain. However, there has been little evidence how and why quality leakages happen along the leather sector value chain. Our thorough analysis of the leather sector value chain shows that the quality problems are caused by structural problems (at the breeding and post-breeding stages), disconnect between quality and price (i.e., price does not signal quality), lack of efficient marketing, transportation and storage systems, and lack of better tanning technologies.

Suggested Citation

  • Gebrehiwot, Berihu Assefa & Gebreeyesus, Mulu, 2018. "Drivers of Quality Problems in the Leather Sector Value Chain in Ethiopia," MPRA Paper 100936, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:100936
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    File URL: https://mpra.ub.uni-muenchen.de/100936/1/MPRA_paper_100936.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ethiopia; quality; leather; incentive; signaling;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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