Browsing by Author "Atnafu, Gebremeskel (PhD)"

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    Analysis of Determinants of Adoption and Use Intensity of Organic Fertilizer in Ejere District, West Shoa, Oromia, Ethiopia
    (A.A.U, 2020-10) Milkessa, Dejene Robi; Atnafu, Gebremeskel (PhD)
    The main objective of this study is to investigate the determinants of Adoption and use intensity of Organic Fertilizer in Ejere District, West Shoa, Oromia, Ethiopia. Primary cross-sectional data was collected from systematically selected 53 adopters and 151 non- adopters of organic fertilizer. The study employed probit model and the analysis was made using Cragg’s double hurdle. The empirical Results revealed that age of household negatively influenced decision to adopt organic fertilizer while livestock numbers, extension contacts, access to information media, membership to farmer based organizations, farm experience and farm income positively influenced the decision to adopt organic fertilizer. However, the study found out that gender, household head education, and distance to near market have statistically insignificant impact on adoption of organic fertilizer. In addition, this study found that being single, divorced or widowed significantly decreases the adoption of organic fertilizer while getting married has opposite impact. What’s more, farm size and membership to farmer groups influenced intensity of adoption positively while farm income and application frequency influenced use intensity of organic fertilizer negatively. This study also has an important policy implication. The findings of this study imply that appropriate and adequate extension services have to be provided in line with current agricultural development policies of the country. The government body of the district should encourage entrepreneurs to invest in organic fertilizer processing plants. The government should assign skilled and disciplined agricultural extension workers and must closely follow the performance the assigned extension workers to ensure that the farmers get the expected services. The policy makers should target at enabling farmers to have access to information media such as radio, and encouraging farmers’ group formation and membership to such organizations. Improving farmer access to credit facilities needs to be enhanced. The national government along with local government should investment on the educational sector, expanding of infrastructural facilities, creating market activities, and building institutions. The government should encourage farmers to rear animals under intensive livestock management systems that support more livestock units per unit of land for provision of manure. This study would like to invite researchers to conduct more investigation on farmers’ perception towards organic fertilizer and income and welfare impact of using organic fertilizer in the study area.
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    Does the Exchange Rate Regime Matter for East African Countries?
    (Addis Ababa University, 2018-10) Mohammed, Hassen; Atnafu, Gebremeskel (PhD)
    This study aimed at identifying whether the choice of exchange rate regime (ERR) matter for the inflation and economic growth of East African countries and identifying which regimes do best for the region. To do so it used the panel data of 10(ten) selected countries observed from 1996-2016. It used descriptive statistics and econometric analysis techniques. Even though the de-jure regime was much smaller than the de-facto, the study found that intermediate regimes dominated other ERRs. Relatively the highest levels of inflation are recorded in Malawi and Zambia while Uganda had the lowest inflation. The analysis also shows that the highest average growth level was that of Mozambique and the lowest was that of Burundi. The study found that both the claim and practice of intermediate regimes are related to lower inflation compared to pegged regimes. In the 'coarse' classification crawling regimes are negatively related to inflation compared to pegged regimes. Moreover, estimation of the 'fine' classification shows de-facto crawling peg and crawling band are negatively related to inflation compared to currency board arrangement. The study also found that de-facto intermediate regimes are negatively related to economic growth. When the 'coarse' classification of regimes is applied all intermediate regimes (i.e. crawling, managed floating and free falling regimes) are negatively related to growth. However, when institutional quality is controlled almost all the regime dummies of the 'fine' classification became insignificant in the growth regression. The result implies that the choice of ERR should be based on whether countries target either inflation or growth. Future researchers could focus on "why countries choose regimes?".
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    Macroeconomic Factors Affecting Credit Risk in the Ethiopian Commercial Banks: An Autorgressive Distributed Lag (ARDI) Approach
    (A.A.U, 2020-06) Belaynew, Berhanu; Atnafu, Gebremeskel (PhD)
    The main objective of the study was to investigate the macroeconomic factors affecting non-performing loans in the Ethiopian commercial banks. The study employed Auto Regressive Distribute Lagged (ARDL) model employed to quarterly data for the period of 2001/02Q1 to 2018/19Q4 to investigate the existence of short-run and long-run relationship between non-performing loans (NPLs) and set of macroeconomic variables. Additionally, the study employed the variance decomposition (VDC) and impulse response functions (IRF‟s) were used to test for the response of non-performing loans to innovations in macroeconomic variables. The major findings are that there is a long run relationship between non-performing loans (NPLs) and real GDP growth rate, growth of broad money supply and terms of trade are negatively and statistically significant. Inflation rate, lending interest rate and unemployment rate are found be statistically insignificant in the long run. The short run results also shows that the real GDP growth rate, growth of Broad money supply, and terms of trade affect non-performing loans negatively and are statistically significant while the Inflation rate affects non-performing loans positively and statistically significant. In additional to this result, unemployment rate and lending interest rate found statistically insignificant in the short run. Further the variance decomposition results show that innovations in terms of trade highly contributed to the forecast error variance of non-performing loans in the Ethiopian commercial banks compared to other explanatory variables. The study suggests that, commercial banks should consider the macroeconomic factors before extending loans and the government can also play important role in improving the level of NPLs in the economy by influencing the macroeconomic variables. Also the study suggest for future researcher to explore the other macroeconomic factors affecting credit risk. Few of the variables that can be used in the future studies are gross fixed capital formation, growth in investment, consumption, exchange rate and loan to GDP ratio.