dc.description.abstract |
Leather industry is among the major manufacturing industry sub-sectors that Ethiopia has a
comparative advantage in the export market. Analyzing the overall trend and seasonal
variations in the export prices of the sector will help to make appropriate production
planning. The objective of this study was to conduct time series analysis of monthly export
price of leather products from Kombolcha tannery during January, 2005 to December 2016.
Secondary data on monthly export prices was obtained from the tannery. Univariate time
series model was used to analyze the data. The Autoregressive integrated moving average
and Generalized Autoregressive Conditional Heteroscedasticity approach was used to
forecast monthly export prices of leather in Kombolcha tannery. GARCH (1,1) model was
identified as a reasonable model to handle volatility and predict the export price of leather.
Based on the fitted GARCH (1,1) model monthly export prices of leather were forecasted
from January 2017 to June 2018. The forecasted results obtained from GARCH (1,1) model
showed that export leather prices are expected to increase from January 2017 to June 2018
with some fluctuations as a result of volatility. |
en_US |