Browsing by Author "Admassie, Assefa( PhD)"

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    Access to Credit and the Impact of Credit constraints on Agricultural Productivity in Ethiopia: Evidence from Selected Zones of Rural Amhara
    (Addis Ababa University, 2015-02) Dessie, Tilahun; Admassie, Assefa( PhD)
    The economy of Ethiopia is characterized by its reliance on subsistence agriculture and the existence of underdeveloped financial institutions, especially in rural areas. In the literature, the role of credit as an instrument to boost productivity and welfare has long been justified. The main goal of this paper is to show the agricultural credit access landscape and investigate the impact of credit constraints on agricultural productivity in Ethiopia by using a household survey data from rural Amhara collected in 2013. After adjustments throughout the data cleaning process, the study relied on a survey of 1082 households which are found with valid information for all the variables considered in study. The study revealed that 66.17 percent of households are credit constrained which shows how the rural credit market landscape in Ethiopia is highly imperfect. By using an endogenous switching regression model, the study tried to show the effect of demographic and other socioeconomic variables on credit constraint status of households and simultaneously the impact of credit constraints on agricultural productivity. Finally, the paper uncovered the existence of a huge productivity loss due to various types of credit constraints. The cumulative impact is estimated to be 17.94 percent, i.e. an additional per hectare income of 1410.17 Ethiopian birr productivity gain if all types of credit constraints happen to be eliminated. This calls for a well-coordinated policy intervention compatible with the dynamics of rural institutions and other location bottlenecks.
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    Child Labour in the Informal Sector (A Case Study of Child Shoe Polishers in Gulele Keflea Ketma)
    (Addis Ababa University, 2006-06) Shimelis, Solomon; Admassie, Assefa( PhD)
    Child labour is pervasive probl elll throughout the world, especially in developing countri es. As in Illany developing countries, ch ild labour is a widespread problelll in Ethiopia . In rural arcas, agricu lture is by far the dOlllinant sector of child clllploYlllent where as in urban areas ch ild wgrk ers are Illostly engaged ill the informal ScclOr. There are different lypes of child labour in the info rillal scctor in Ethiopia but the study focus only on those ch ildren who are engaged in shoe shining activities in Gulele sub city. The objective of the study was to know the factors that led the chi ldren into shoe shining work, the types of hazards and ri sks they face, the number of hours they devote to work, the impact of work on the health and education of the working c hildren, the physical and verbal abuse they encountered, they work related injuries they experienced, the type of treatment they recei ved, the evaluation of working chi Idren about their work place, literacy status, levels of education and training, the attitude and pe rception of the children of their c urrent and future life and to systematically observe the working condi tions of the ch ild shoe shiners and finally forward some plausible recommendations for cons ide rat ion. Both qua ntitative and qualitati ve data were collected by usi ng su rvey method, focus group discussion and direct observation. The findings of the study indicate that nearly all the child shoe shiners that participated in the st udy were with disadvantaged background in vo lving lack of access to ed ucat ion, cOllli ng from poor fami li es, sOllle being orphaned and having mi grated from other parts of Ethiop ia to Addis Ababa. According to the study findin gs working children that partic ipated in the study were forc ed to engage in to shoe sh in ing carrier by so Illany reasons inc ludin g the socio- economic and cultural factor of their circul11stances. The study findings showed that child shoe shiners that parti cipated in the study were lead ing adult leaves, normally worki ng for long hours under conditions daillaging to thei,' healthy and to their physical development, facing physical and verbal abuse, freq uently deprived of mean ing ful educational opportunities that could open up for them better future. Final ly some important recommendations have been ra ised as a solution to reduce the problem faced by child shoe shiners in the stud y a rea
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    The Impact of Foreign Direct Investment on Export Diversification: A Panel Study on Common Market for Eastern and Southern Africa
    (Addis Ababa University, 2016-06) Teressa, Lamek; Admassie, Assefa( PhD)
    The main objective of this paper is to investigate the impact FDI has on export diversification in the Common Market for Eastern and Southern Africa (COMESA). The paper employs two measures for the two margins of diversification. Diversification at the intensive margin is measured by Herfindahl index. Diversification at the extensive margin is measured by a count indicator of new export lines. Panel data econometric methods are used; specifically a random effects regression is used as per the choice of a Hausman test. Since linear models are inappropriate for count variables, the paper used a Poisson regression method to investigate the impact of FDI on new export lines. The findings suggest that FDI does not help COMESA countries diversify at the intensive margin but has a significant positive impact on diversification at the extensive margin. The results can be explained as follows: Even though FDI helps COMESA countries export new products, these products might still be a very small proportion of the export earnings. The Herfindahl index is sensitive to changes in shares of export earnings but it might not pick up small changes in shares. This is because exporting new products doesn’t necessarily mean that the export shares of the major traditional export items decline significantly. It is concluded that COMESA countries should continue to pursue FDI favorable policies like tax incentives, administrative support, customs incentives etc. since FDI expands their export basket.
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    The Long Run Impact of Government Domestic Borrowing on Bank Credit to the Private Sector in Ethiopia
    (Addis Ababa University, 2014-06) Endashaw, Megersa; Admassie, Assefa( PhD)
    Motivated by the heavy government reliance on domestic banks credit over the last couple of years in Ethiopia, the current paper attempted to empirically test its longrun impact on private sector credit employing the tools of cointegrated VAR model. The paper used quarterly data ranging from QI 1999 to QIV 2013 E.F.Y. to chiefly explore the longrun impact of both bank credit financed government deficit and bank credit directed to the public sector on private sector credit. Arguing against the classical “interest rate transmission channel” for the Ethiopian case, and hence introducing the channel of credit i.e. availability of credit, the paper generated some important findings. Bank credit directed to the public sector reports a significant and positive longrun effect on private sector credit over the period of study. As such a 1 birr permanent increase in bank credit to the public sector is associated with a 0.40 cents growth in bank credit to the private sector supporting the crowding in effect hypothesis. The effect is stronger when we account for endogeneity of gross domestic product and bank credit financed government deficit (about 0.47 cents growth in bank credit to the private sector). Gross domestic product and bank credit financed government fiscal deficit coefficients, on the other hand, reports a positive but insignificant longrun effect on private sector credit.
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    The Role of Women’s Status on Children’s Nutrition Security in Ethiopia
    (Addis Ababa University, 2014-06) Asitatikie, Habtamu; Admassie, Assefa( PhD)
    Well improved health care and child nutrition is a manifestation for any country to escape from poverty. In most developing countries like Ethiopia children suffer from the burden of malnutrition. Numerous of studies in recent years have focused attention on the determinants of child nutrition in the developing countries. In the Ethiopian case, Studies show that almost half of the children are either stunted or underweight. This paper contributed to this concern by giving concern to that of women empowerment measurement variables and their correlation with nutritional status. Principally this paper examines the role of women’s status on children’s nutrition security in Ethiopia using the EDHS 2011 survey. The paper employs both descriptive and Econometrics tools (both bivariate and Multivariate techniques) to show the interrelation ship among different women’s status indicator variables including other socio economic variables on child nutrition. The study found that women’s education, decision making role of women, women’s attitude towards domestic violence and child age as a significant factor for child nutrition. The study also found that wealth index of households, availability of toilet and sanitation services as determining factor for child nutrition. Separate regressions for rural and urban samples have been conducted and we observe that there is child malnutrition variation in terms of place of residence in which those of children who reside in rural areas are more stunted and underweight. There is also a considerable malnutrition difference among regions too. Hence, having this trend in mind intervention mechanisms not only to improve child nutrition but also so as to empower women in every aspect like Economical, social and related aspects is necessary.