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

Berihu Gebrehiwot and Mulu Gebreeyesus

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Ethiopia; quality; leather; incentive; signaling (search for similar items in EconPapers)
JEL-codes: L2 L5 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:100936

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