Browsing by Author "Anbessa Abebe"

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    Determinants of Foreign Direct Investment Inflows in Ethiopia
    (Addis Ababa University, 2019-04) Anbessa Abebe; Abebe Yitayewu
    This paper examines the potential determinants of FDI inflow to Ethiopia. The selected determinants are market size, trade openness, exchange rate and inflation rate were used as independent variables to measure the effect on FDI inflows to Ethiopia. The study covers 26-year period start from 1992 to 2017 of time series data collected from NBE and World Bank dataset and the collected data analyzed using ARDL model to get long run and short run effects of the variables. Firstly, the study found that in long run market size measured by real GDP per capita has negative but its effect is non-significant, exchange rate and trade openness have positive impact but their effect is insignificant. On the other hand, inflation rate has negative impact on FDI inflow in long term and its effect is significant at 10% level. Secondly, in short run, based on ARDL cointegration real GDP per capita, trade openness and inflation rate have negative impact on net FDI inflow. In short run exchange rate has positive impact on net inflow. The effect of all variables in short term is statistically insignificant. As per findings the recommendation also forwarded. The government should focus on creating conducive investment environment to attract more capital inflow. The government should also focus on more openness through increasing current export level. As a finding indicate exchange rate depreciation positive effect, the policy makers should review to increases on timely bases while controlling other factors increases inflationary level
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    Key Drivers of Liquidity Risk in The Banking Industry of Ethiopia
    (2025-10) Anbessa Abebe; Meshesha Demie (PhD)
    This study investigates the key drivers of liquidity risk in the Ethiopian banking industry, using bank-specific and macroeconomic factors. Using panel data from 17 commercial banks over the period 2000–2023, the research employs a fixed effects model to analyze the determinants of liquidity risk, measured by the liquidity ratio (LR). Bank-specific factors such as bank size (BS), capital adequacy ratio (CAR), asset quality (AQ), and loan-to-deposit ratio (LDR) are examined alongside macroeconomic variables, including GDP growth rate (GDPR), inflation rate (INFR), and interest rate spread (INTR). The findings of the study revealed that Lagged LR and capital adequacy have a significant positive impact on liquidity. Conversely, the loan-to-deposit ratio shows a Significance negative relationship with liquidity. Macroeconomic factors such as GDP growth and inflation have negative and insignificance influences on liquidity, while interest rate spreads has positive and significant impact on liquidity. The research concluded that both bank specific and macroeconomic factors have impact on the liquidity of banks. Thus, the researcher recommended that commercial banks and policymakers need to ensure prudent lending practices, regulatory oversight, and macroeconomic stability to mitigate liquidity risks. This study contributes to the existing literature by providing a comprehensive analysis on the determinants of liquidity risk in a developing economy, offering valuable insights for academicians, practitioners, and policymakers.