Browsing by Author "Hussein Abdurezack"

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    The Effect of Telecommunications Services on Urban Household Poverty Reduction in Ethiopia: The Case of Debre Birhan City
    (A.A.U, 2021-06) Mandefro Addisu; Hussein Abdurezack
    This paper evaluates the Effect of telecommunications services on urban household poverty reduction in Ethiopia in Debre Birhan. In this study, we selected a total sample of 202 households using a systematic sampling technique. The data collection instrument was face-to-face interviews using structured closed and open-ended questionnaires. The study applied Multidimensional Poverty Index to set a poverty line. This study used a binary logit model and descriptive statistics to investigate the effect of telecommunications services on urban household poverty reduction. 21.37 percent of telecom service users (both internet and mobile) are poor, and 78.63 percent of telecom service users in the study area were non-poor. The result of the econometric estimation shows telecom service positively and significantly impacts household poverty in a favorable direction; the marginal effect suggests that households with access to the internet and mobile phones decrease the likelihood of being MPI poor by 25.6percent. In addition, other covariates like household head education level, household head age, credit access, and household income were found to reduce household poverty. Thus, the study showed that increasing access to telecom services is crucial in reducing household poverty. Therefore, any intervention in providing more telecom services like the internet and access to cell phones and improving the service quality will induce households to engage in activities that will enhance households’ wellbeing. Keywords: Poverty, Multidimensional Poverty Index, Logistic Regression, Telecommunications Paper type Research paper
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    The Effects of Sociopolitical Instability, and Macroeconomic Uncertainty on Private Investment: Evidence from Sub Saharan African Countries
    (A.A.U, 2021-06) Debebe Buzayehu; Hussein Abdurezack
    This study attempts to examine the effects of sociopolitical instability, and macroeconomic volatility on private investment, for a panel of 26 SSA countries for the period 1986-15. To uncover robust results this study exploited the within group, forward orthogonal deviation (FOD) and system GMM estimators. Results from the three dynamic panel models estimation shows that, sociopolitical instability is found to have pronounced significant positive effects on private investment compared to macroeconomic volatility and standard macroeconomic culprits. Moreover, macroeconomic uncertainty captured by unconditional standard deviations of exchange rate turns out with deleterious effect on private investment in SSA, and significant in all models. However, the unconditional standard deviation of inflation rate seems insignificant in explaining private investment fluctuations in the region. Corroborating the accelerator effects of output, real GDP showed positive and significant impact on private investment in SSA, while credit to the private sector, public investment, and external debt service found to have insignificant effects in SSA and the results are persistent across all the three models. We argued that sociopolitical stability mainly characterized by: stable government, abetment of conflicts (internal, external, ethnic and religious), improved socioeconomic conditions and investment profile, lesser corruption, and heightening of institutional and bureaucracy quality promotes private investment in SSA. Further, our empirical finding asserts limited production capacity associated with heavy dependency on imported intermediate and capital goods signifies the deterring effects of exchange rate volatility. And thus SSA should promote strategies on the diversification of production activities and thereby make them less dependent to imported investment goods.
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    Market Efficiency of the Ethiopia Commodity Exchange: The Case of Export Coffee Trading
    (Addis Ababa University, 2010-11) Hussein Abdurezack; Ageba Gebrehiwot
    Despite the pivotal role of agriculture in the Ethiopian economy, the sector’s development is highly constrained by infrastructural and institutional problems. To tackle part of the institutional problem, spot-trading Ethiopia Commodity Exchange (ECX) was established with a vision to revolutionize the country’s agriculture through an efficient, dynamic, forward-looking and orderly marketing system. This thesis is probably the first of its type to study the market efficiency of the ECX in trading its major commodity, namely export coffee. The Efficient Market Hypothesis (EMH) is widely used in market efficiency studies. This thesis tested the weak form of EMH using the ADF, the Lo-MacKinlay variance ratio and the BDS tests for random walk to study the price formation behavior of washed and unwashed export coffees traded in the exchange for 16 months. The post estimation tests on the ADF regression showed that ADF is inappropriate to use for the purpose for the study. The test for normality of observations also showed that parametric tests for random walk are not appropriate to study most of the prices series. The results from the non-parametric Variance Ratio and BDS tests, however, consistently showed that there are both linear and non-linear dependencies in the price series of both commodities and there is no observable trend towards efficiency. To further strength the results, the Spearman’s Rank Correlation coefficient results have supported the presence of a persistent and strong dependencies in the price series. The result thus entails that, within the study period, ECX is weak-form inefficient and there is possibilities of taking trading position that potentially offer traders excess profit using the predictability in the price series. The result, however, is not surprising given the presence of price band limits, the infancy of the Exchange and most importantly the nature of the trading (spot-based) in ECX. To address the market efficiency problem and other crucial issues, the Exchange has to shift to futures based trading. As such shifts cannot be made overnight, some measures are recommended that can be implemented alongside the institutional development process in order to make the existing system a more efficient one.