Bamboo is one of the more important natural resources in Ethiopia and contributes to the bioeconomy as a potential source for high-value products. While the country is the largest producer of bamboo in Africa, the existing utilization of the bamboo sector in Ethiopia remains under-developed, with little value addition. This study identifies the current market challenges and opportunities for future developments of the northern Ethiopian bamboo sector, with a focus on the Injibara township. This research adopts the “value web” approach to assess the potentials of different product lines that create the bamboo biomass value web. We utilize qualitative data collection methods, in particular, semi-structured interviews and informal focus group discussions with key stakeholders. Our findings suggest that bamboo farmers in Injibara are constrained by a lack of local demand and market for bamboo products with high-value addition, leading to an absence of product diversification and innovation. Furthermore, there is an overreliance on foreign technology and methods that are poorly matched for local needs. We recommend that policymakers invest in targeted and effective training strategies on bamboo cultivation and processing. Furthermore, farmers can benefit from decreasing their reliance on middle men with cooperatives or contract arrangements.

The literature that addresses the role of institutions in bilateral trade is extensive. However, research that links institutional quality to specific products and their different levels of value addition is lacking. In this study, we look into institutional quality, based on three indicators from the World Bank's world governance indicators, and its indicator‐specific effects on bilateral coconut trade. In particular, we study coconut products with varying degrees of value addition. We use structural gravity models to measure how institutions affect the trade performance of the top 26 coconut producing countries to the top 15 importing economies over the years 1996–2016. Our results suggest that increased government effectiveness enhances trade of high‐value products, whereas better voice and accountability scores decrease trade of coconut products with both levels of value addition. No clear trade effect is observed when two countries are more similar in each of the three indicators. We conclude that each indicator has different trade effects on each of the coconut product categories. We end by giving recommendations that will help to improve the coconut export performance in their respective countries and for future research.