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Prospects for the Private Sector on the Ethiopian Seed Market: the Role of Transaction Costs


There is a considerable shortage of improved seeds of most major crops in Ethiopia. Despite good reasons to invest in the market for seeds, there are no private sector investments. Using an institutional economics theoretical framework, this present paper analyzes the Ethiopian seed system and find out transaction costs to identify potential starting points for institutional changes. Analyzing data from expert interviews conducted in Ethiopia mainly in 2012, it appears that transaction costs are high along the whole seed value chain and mainly borne by the government as public organizations dominate the Ethiopian seed system, leaving little room for the private seed sector. However, direct marketing pilot schemes which have been started recently are a signal for careful market liberalization efforts.

Corporate Author: 
Ethiopian Economics Association (EEA)
Ethiopian Economics Association (EEA)
Primary Descriptors: 


Geographic Descriptors: 
Cataloge Date: 
Broad Subject heading: 
Seed industry and trade
Call Number: 
330.963 PRO 2015
Serial Key Title: 
Proceedings of the Twelfth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Publication date: 
2015-06-01 00:00:00
Conference Place: 
EEA Conference Center
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Current frequency: 
Conference date: 
July 16 to 19, 2014

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