Factors affecting choices of export markets for agricultural commodities in Uganda
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Date
2017
Authors
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Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
The study sought to provide insights into the export market choices of Uganda’s agricultural commodity exports. To achieve this objective, cross-sectional data from 190 agricultural commodity exporters in Uganda was obtained between June -and August 2015. Data analysis was carried out using SPSS version 20, involving zero-order correlations (Pearson’s), hierarchical multiple regressions, while interaction terms were derived by using hierarchical regression analysis and modgraph for graphical displays of the interact effects. The findings revealed that firm-specific factors, host-country specific and entry-barrier factors significantly affected export market choices. Secondly, un-solicited export orders negatively and significantly affected the export market choices. Psychic distance and word-of-mouth hardly affected the export market choices made. Thirdly, Government support programs, exhibitions and previous customers significantly affected export market choices for Uganda’s agricultural products. The study reveals ‘what is’ and therefore can easily be used to steer agricultural exporters to ‘what ought to be’. Theoretically, the study reveals that export market choices on the basis of systematic methods is a function of export market information-use. Similarly, this study has presented empirical evidence to support the notion that the psychic distance concept is “past its due date” and in so doing, affirming that the psychic distance effect is inconsequential when applied to international market choices, specifically in the context of agricultural commodity exports from a developing country. Lastly, the study set out to determine the predictive potential or the extent to which international market selection approaches influence export market choices of Uganda’s agricultural commodities. The results of a hierarchical multiple regression analysis showed that the model explained 22.4% of the variance in the choice of Uganda’s agricultural commodities’ exports markets. The study draws the conclusion that, factors affecting international market selection of Uganda’s agricultural exports are more objective and guided by relational factors. Non-rational factors do not have significant weight in the international market selection process. Psychic distance was revealed to be inconsequential to export market choices, and export market information use only moderates the relationship between systematic International market selection and export market choices. The study recommends that exporting firms increasingly hire export managers with sufficient international exposure (experience) in foreign markets, as well as increase participation in international trade exhibitions and fairs, increase their membership to government export promotion agencies and to regard unsolicited export orders as complimentary. Similarly, policy makers ought to relentlessly negotiate for the elimination of non-tariff barriers and the routine scanning of international market developments for the benefit of the nation’s exports. Further studies can examine export market choices in the context of services exports.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HD9017.U33E253 )
Keywords
Farm produce, Marketing, Produce trade, Uganda
Citation
Ecel, A. (2017) Factors affecting choices of export markets for agricultural commodities in Uganda. Master dissertation, University of Dar es Salaam. Dar es Salaam.