Enhancing the competitiveness of Ethiopian cut flower exports using strategic diplomacy

Alemayehu Ethiopia Derege

International Journal of Diplomacy and Economy, 2025, vol. 11, issue 1, 44-62

Abstract: This study sought to identify the main impacts of diplomacy on Ethiopia's cut flower exports. The fluctuating diplomatic relations with countries of polarised ideology have greatly impacted Ethiopia's main exports. To understand the extent of this issue, the researcher examined the impact of changing diplomatic relations using a treatment effect model. The researcher linked export incentives with cut flower exports, and finally identified challenges for the cut flower export subsector. Based on their analysis, researcher identified low social acceptance of investment in flowers, high competition from other partner countries, and low compensation for land and property that underperforms the sector. The diplomatic relation during the Prosperity Party makes the export of cut flowers fall by 28.4% relative to the EPRDF regime. Based on the results, the study suggests increasing export incentives for the sector. Besides, the government should carefully analyse the economic cost of diplomatic polarisation, assess its current diplomatic ties and ascent towards preferential diplomatic pluralism. Policies that promote economic diplomacy levitate investors' confidence, industry and export in Ethiopia.

Keywords: diplomacy; cut flower; export; incentives; GDP; trade competitiveness. (search for similar items in EconPapers)
Date: 2025
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