Browsing by Author "Melesse, Mulugeta"

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    Determinants of Commercial Banks Profitability in Ethiopia
    (Addis Ababa University, 2015-05) Melesse, Mulugeta; Mebrahtu, Kahsu (Assistant Professor)
    The study examined the effect of internal (bank-specific) and external (industry-specific and macroeconomic) determinants of Ethiopian commercial banks profitability by using panel data of eight commercial banks from the period 2000 – 2013. The study used quantitative research approach and the secondary data collected from the banks’ financial statements is analyzed by using Ordinary Least Square (OLS) estimation method of multiple linear regressions models to measure the effect of internal and external determinants on profitability of banks. Return on Asset (ROA) and Return on Equity (ROE) are used as banks’ profitability measurement variables of the study. The output of the study has shown that bank size significantly and positively affects the bank’s profitability. However, credit risk, deposit liability and operational efficiency affect the bank’s profitability significantly and negatively as expected. Moreover, the macroeconomic determinant of GDP has positive and significant effect on return on assets while it is positive but insignificant in Return on Equity. Regarding the ownership of banks, the output of the study has revealed that operational efficiency and bank size are significant in explaining profitability of both State and privately owned banks. On the other hand, credit risk is found to affect the profitability of private banks significantly
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    Nexus between Political Instability and Economic Growth in Ethiopia
    (Addis Ababa University, 2021-06) Melesse, Mulugeta; Danu, Berhanu (PhD)
    This study investigates the nexus between political instability and economic growth in Ethiopia for the period of 1991- 2020due to the availability of data. The ARDL, co-integration approach and Error Correction Model are employed to examine the existence of long- run relationship between political instability and economic growth as well as short- run dynamics of economic growth respectively. For investigating the causal relationship among the variables of the model Granger causality test has been applied. The empirical results of the study confirm the existence of cointegration between political instability and economic growth in Ethiopia. Results show that political instability has significant and negative relation with economic growth both in long-run and short-run in general. This paper is relevant for two main reasons. First, it adds to the debate on the effects of political instability on economic growth. Second, it makes an important contribution by focusing on the case of Ethiopia, which has received little attention in the literature on political instability relation with economic growth so far, even though political instability is a constant threat to the country.