Purpose: as export is an essential means of economic development of both developing and developed countries, this study targeted on “Export Barriers and Competitiveness of Developing Economies: The Case of the Ethiopian Leather Footwear Industry”.
Research Methodology: A survey of 15 manufacturing firms was conducted in Ethiopian. Out of 100 sampled respondents, 61 properly answered and returned the questionnaire to the researcher. Interview was also conducted with top managers and owners. The survey data was analyzed using factor analysis, MDS and cluster analysis techniques. The factor analysis identified 10 significant barriers. Then, their impact on the export competitiveness of the export firms was analyzed using the factor loadings, factor score coefficients results and the measurement of decision rules adopted by Vichea (2005).
Findings: The significant barriers have had different perceived export barriers intensity on the export competitiveness of the firms. The result shows that all the export barriers were significant except the environmental barrier which was partially supported. In the MDS analysis, four clusters of firms were formulated. Cluster I firms (Peacock, Ramsay and Crystal), cluster II (Ara AG, Anbessa and TikurAbbay), cluster III (New Wing, Fotanya, RasDeshaen, Walia, Kangaroo, Olivet and Wondesen Birhanu) and cluster IV (Ok Jamaica and Modern Zege) are more exposed to competition, logistic, product quality and financial barriers respectively. Finally, the paper discusses and concludes the implications of the findings for policy, practices and research.