Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments

There is a considerable shortage of improved seed in Ethiopia. Despite good reasons to invest in this market, private sector investments are not observed. Using an institutional economics theoretical framework, this paper analyzes the formal Ethiopian seed system and identifies transaction costs to find potential starting points for institutional innovations. Analyzing data from more than 60 expert interviews conducted in Ethiopia mainly in 2012, it appears that transaction costs are high along the whole seed value chain and mainly born by the government as public organizations dominate the Ethiopian seed system, leaving little room for the private sector. However, direct marketing pilots that have been started recently are a signal of careful market liberalization efforts.

Issue Date:
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 0049-8599 (Other)
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Published in:
Quarterly Journal of International Agriculture, Volume 54, Number 1
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JEL Codes:
Q13; Q18
Series Statement:
Quarterly Journal of International Agriculture 54 (2015)

 Record created 2017-04-01, last modified 2018-01-23

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