Browsing by Author "Abdurahman Hassen"

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    Policy Implementation Practice in Ethiopia: The Case of Industrial Policy
    (Addis Ababa University, 2019-05) Abdurahman Hassen; Terefe Zeleke
    Recently, the call for more industrialization in Africa is becoming stronger than ever. Policy makers acknowledged ability of industrialization through industrial policies to bring prosperity, new jobs, and better economies for all. Nonetheless, for different policies including industrial policy, little attention is paid to the subject of policy implementation by policy makers. This study tried to examine the implementation practice of Ethiopia‟s Industrial policy. The study do have three specific objectives to evaluate the performance of industrial sector under GTP II, to assess the internal validity, clarity and comprehensiveness of industrial policy and to examine factors influencing the successful implementation of industrial policy. In order to attain the objective of the study and answer the research questions, both descriptive and exploratory research methods were used. The study employed mixed research approach to collect, analyze and interpret the date. Both primary and secondary sources of data were employed in order to obtain relevant data to the study. In this regard, in order to collect primary data, questionnaire survey and interview techniques were used and the questionnaire was self-administered. The study also adopted a face-face interview. Non-probability sampling method was employed to select the samples in order to achieve the objective the research. From the non- probability sampling method quota sampling was employed. Accordingly, 90 samples were selected from the Ministry of Trade and Industry five institutions accountable to the Ministry. The data collected was analyzed using descriptive statistics. Based on the above mention methodology and design the study found that the performance of the industrial sector found to be disappointing in achieving its targets set in the second Growth and Transformation Plan (GTPII). The study revealed that the goals of the Industrial policy found to be explicitly stated and concrete enough. Regarding the internal validity, the study finds out that the policy is supported by internal validity in logically drawing outcome from the goals and strategy priorities. Evidence from the analysis of findings from this study suggested that the industrial policy/strategy is comprehensive enough to cover issues related to the industrial sector. And finally the study identified a number of factors influencing industrial policy implementation. The study recommended that the development of new industrial policy document, good coordination mechanisms and monitoring and evaluation mechanisms should be implemented.
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    The Impact of Fiscal Decentralization on Economic Growth in Ethiopia
    (Addis Ababa University, 2022-06) Abdurahman Hassen; Sisay Debebe
    Ethiopia embarked its journey of fiscal decentralization during the period of the Transitional Government of Ethiopia (TGE) and later, with the adoption of the 1995 Constitution of the Federal Democratic Republic of Ethiopia, fiscal decentralization was formalized. Two and a half decades after the 1995 Constitution, which set the path for fiscal decentralization in Ethiopia, no empirical evidence exists to prove whether fiscal decentralization has boosted economic growth or not. Thus, the main objective of this study is to investigate the impact of fiscal decentralization on economic growth in the Ethiopian context. The study used the Auto Regressive Distributed Lagged (ARDL) model to identify short and long run relationships between economic growth, fiscal decentralization, and chosen macroeconomic variables. The model was estimated using annual data of 25 years for the period ranging between 1996/97 to 2020/21. The model exhibits all of the characteristics of a good regression model. The model passed all serial correlation, normality, Heterosedasticity, and Ramsey RESET tests. The Long-run estimation of the econometric analysis shows statistically significant and positive relationship between GDP per capita and fiscal decentralization in Ethiopian case. Similarly, the short-run ARDL estimate indicates that fiscal decentralization is positively related with GDP per capita and it is statistically significant. The study suggests that government can use fiscal decentralization as one tool to increase economic growth by devolving fiscal responsibilities to lower levels of government, strengthening local level institutions and enhancing competency of lower level officials. Keywords: Fiscal Decentralization, Economic Growth, ARDL Model, Fiscal Imbalance, Ethiopia