Global Value Chains and Market Formation Process in Emerging Export Activity: Evidence from Ethiopian Flower Industry

Abstract

This article provides a case study of the Ethiopian flower export industry which successfully emerged at time when the EU market (main destination) was already characterised by increasingly stringent standards and delivery requirements. Entering this market required a multitude of capabilities at firm, sector and national levels. Several of these capabilities were absent or weak in the domestic market when the new activity kicked off. The article analyses how the capabilities of individual firms and the industry at large co-evolved and the role of various actors in the ‘market formation’ process.

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