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Khat Marketing and Its Export Performance in the Ethiopian Economy

Received: 18 March 2020    Accepted: 2 April 2020    Published: 27 August 2020
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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 analysed using both descriptive and econometric methods. The descriptive study showed that the crop has 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 varies from region to region. The production is 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 seen as socially undesirable in some parts of the country due to its social ill. And 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 are the most important factors which significantly affect 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 harbours considerable social and economic risks to the country.

Published in Science Research (Volume 8, Issue 4)
DOI 10.11648/j.sr.20200804.11
Page(s) 90-97
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Ethiopian Economy, Export Performance, Khat, Khat Export, Khat Marketing

References
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[3] 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.
[4] 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.
[5] 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.
[6] CSA (2017): Agricultural sample survey 2016/2017, Vol. 1: Area and production of major crops. Addis Ababa: Central Statistical Agency, FDRE.
[7] Drug Enforcement Agency. (2017). Drugs of Abuse: A DEA Resource Guide (p. 8, 53). Washington, D. C. Retrieved from https://www.dea.gov/pr/multimedialibrary/publications/drug_of_abuse.pdf.
[8] Dechassa L. (Agriculturalist) (2001): Khat (Catha edulis): Botany, Distribution, Cultivation, Usage and Economics in Ethiopia.
[9] Gemechu D. (2002): Exports and Economic Growth in Ethiopia: An Empirical Investigation. Paper Presented for the First International Conference on the Ethiopian Economy.
[10] 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.
[11] Gebissa, E. 2004. Leaf of Allah: Khat and agricultural transformation in Harerge, Ethiopia, 1875-1991. James Currey.
[12] Gebissa, E. 2008. Scourge of life or an economic lifeline? Public discourses on khat (Catha edulis) in Ethiopia. Substance Use & Misuse 43: 784-802.
[13] Groume A. (2008). “Ethiopian Postal Service to Launch Khat memorial Stamp”. The Capital.
[14] Global Legal Research Center. (2015). Legal Status of Khat in Selected Jurisdictions (pp. 1–5). Washington, D. C.: The Law Library of Congress. Retrieved from https://www.loc.gov/law/help/legal-status-of-khat/legal-status-khat.pdf.
[15] Lautze S., Aklilu Yacob, Raven-Roberts. A Young H., Kebede Girma, Leaning J., 2003. Risk and 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.
[16] NBE [National Bank of Ethiopia] (2017). Annual report 2016/17. Addis Ababa: National Bank of Ethiopia.
[17] Senait G. (2014). The contribution of export earnings to the economic growth of Ethiopia: a trend analysis.
[18] 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 Economic Development (MoFED).
[19] 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.
[20] 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 Committee on Drug Dependence, 34th report, Geneva, 2006: At: http://whqlibdoc.who.int/trs/WHO_TRS_942_eng.pdf.
[21] Wooldridge, J. M. 2002. Introductory Econometrics: A Modern Approach. South-Western College Pub, Cincinnati, OH.
[22] World Health Organization (WHO), Assessment of Khat. Report of the 34th committee on drug dependence. Geneva, 2006.
[23] Yeraswork A. The Khat Conundrum in Ethiopia: Socioeconomic Impact and Policy Directions. Addis Ababa; Forum for Social Studies, 2017.
Cite This Article
  • APA Style

    Petros Terefe Tolcha. (2020). Khat Marketing and Its Export Performance in the Ethiopian Economy. Science Research, 8(4), 90-97. https://doi.org/10.11648/j.sr.20200804.11

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    ACS Style

    Petros Terefe Tolcha. Khat Marketing and Its Export Performance in the Ethiopian Economy. Sci. Res. 2020, 8(4), 90-97. doi: 10.11648/j.sr.20200804.11

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    AMA Style

    Petros Terefe Tolcha. Khat Marketing and Its Export Performance in the Ethiopian Economy. Sci Res. 2020;8(4):90-97. doi: 10.11648/j.sr.20200804.11

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  • @article{10.11648/j.sr.20200804.11,
      author = {Petros Terefe Tolcha},
      title = {Khat Marketing and Its Export Performance in the Ethiopian Economy},
      journal = {Science Research},
      volume = {8},
      number = {4},
      pages = {90-97},
      doi = {10.11648/j.sr.20200804.11},
      url = {https://doi.org/10.11648/j.sr.20200804.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sr.20200804.11},
      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 analysed using both descriptive and econometric methods. The descriptive study showed that the crop has 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 varies from region to region. The production is 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 seen as socially undesirable in some parts of the country due to its social ill. And 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 are the most important factors which significantly affect 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 harbours considerable social and economic risks to the country.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Khat Marketing and Its Export Performance in the Ethiopian Economy
    AU  - Petros Terefe Tolcha
    Y1  - 2020/08/27
    PY  - 2020
    N1  - https://doi.org/10.11648/j.sr.20200804.11
    DO  - 10.11648/j.sr.20200804.11
    T2  - Science Research
    JF  - Science Research
    JO  - Science Research
    SP  - 90
    EP  - 97
    PB  - Science Publishing Group
    SN  - 2329-0927
    UR  - https://doi.org/10.11648/j.sr.20200804.11
    AB  - 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 analysed using both descriptive and econometric methods. The descriptive study showed that the crop has 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 varies from region to region. The production is 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 seen as socially undesirable in some parts of the country due to its social ill. And 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 are the most important factors which significantly affect 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 harbours considerable social and economic risks to the country.
    VL  - 8
    IS  - 4
    ER  - 

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Author Information
  • Department of Economics, College of Business and Economics, Haramaya University, Haramaya, Ethiopia

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