Browsing by Author "Tadesse, Beyene (Dr)"

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    Measuring Total Factor Productivity and Competitiveness of Ethiopia: Textile and Garment Industry
    (A.A.U, 2008-07) Hussen, Jemal; Tadesse, Beyene (Dr)
    This paper analysis the levels of total factor productivity and competitiveness of Ethiopian textile and garment industries in sight from medium and large scale firms over the period 2001-2005. In this regard, textile and garment sub-sector plays an important role in industrialization and economic development. Despite its importance for industrialization, the Ethiopian textile and garment sub-sector has not shown encouraging sign both in terms of productivity and competitiveness. Hence, the general objective of this study aimed at analyzing the level of total factor productivity and competitiveness of Ethiopian textile and garment sub-se::tor using secondary data from central statistical agency of Ethiopia which covers five years period. The study considered 17 textile and 8 garment sample firms. In the analysis, the study employed stochastic frontier production function model and unit cost ratio method. The study made use of a computer program frontier version 4.1c and stata version 9 as a tool for analysis. The results of the analysis revealed that the level of total factor productivity and competitiveness capacity of the sub-sector is not good. On average, technical progress, technical efficiency and Scale efficiency (economies of scale) declined by -34%, -25% and -1.3% per annum over the study period, respectively. The negative change of these efficiencies resulted in negative total factor productivity growth. SO, the contribution of total factor productivity to output growth is found -60.3% per annum. With regard to competitive capacity, all the four digit groups of manufacturing activities in the sub-sector prove to be uncompetitive even in the domestic market. From this analysis, therefore, it would be probably drain that the growth of the subsector is pulled back by total fac tor productivity gro11" 17 & failed to compete both in domestic and international market as a result of increasing trends in technical regress, technical and scale inefficiencies as we:! as cost ineffectiveness. This is, perhaps, a reflection of firm level weakness with mediocre product ct design, use of backward machineries, limited international exposure and passive inaction to competitive products. Thus, textile and garment firms ought to family work in addressing their weakness and adjust themselves with the challenges of the changing global environment. Government should also play its supportive role in terms of ensuring fairly competitive domestic market, providing market and technology intonation, supporting trainings and minimizing transaction costs related to the provision of its services.
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    The Preference for Micro Insurance Products by Households in the Informal Economy of Ghana."
    (A.A.U, 2008-06) Davidson, Newlove; Tadesse, Beyene (Dr)
    Over the past few decades, governments and donor bodies became more focused in alleviating poverty through major policy reforms such as the structural adjustment programmeas well as the economic recovery programe. The world bank and the international monetary fund therefore initiated numerous poverty reduction strategy (PRS) programmes through many governments in developing countries. In recent times, the government of ghana has intensified its crusade on poverty alleviation by granting microcredits through various microfinance institutions in the country to many micro entrepreneurs operating in the informal economy. the main objectives of this study was therefore to investigate the main types of risks facing sampled households operating in the informal economy of ghana and identify various coping strategies used in managing their vulnerability to risk and an appraisal of the preference for micro insurance as the best alternative coping candidate. The study used data from the data base of enterprise life assurance company in Accra for its analysis. Descriptive statistics and probit regression procedures were used in this study. the study reveals that households faced a lot of risks among which the major ones are health, death and business risks. It was observed that vast majority of households essentially used informal insurance as risk management options. the regression results showed an inverse relationship between informal insurance and sampled households preference for microinsurance. This means that the more households are keen on using informal insurance the less their preference for micro insurance services. Additionally, the coefficients of health and property risks were positively related to sampled households preference for microinsurance, meaning that, given households frequent exposure to these risks, the need for microinsurance must increase. this study invokes a major challenge on the government of ghana to ensure a smooth delivery of the national health insurance scheme to households and advises the national insurance commission to encourage insurance companies to intensify their awareness programmes on the benefits of their various micro insurance products as the major way forward in risk management.