Development Economics

Permanent URI for this collection

http://etd.aau.edu.et/handle/123456789/39

Browse

Now showing 1 - 20 of 60

Adoption Of Agricultural Technology Packages In Barley Based Farming System Of Ethiopia
(Addis Ababa University, 2021-09) Getnet, Ermias; Debebe, Sisay (PhD)
Despite the high production potential and the economic importance of the crop, adoption, and diffusion of barley technologies are constrained by various factors. To this end, this study aimed at identifying determinants of adoption of agricultural technologies in the barley-based farming system of Ethiopia, with the specific objectives of identifying factors affecting Agricultural technology package choice and to assess the interdependency between the technologies. The study used data from the Ethiopian socioeconomic survey. The descriptive and econometric analytical tools were applied. The descriptive result of the study identified that variables like education, family size, credit access, farm size, farm income, and age of the farmer play significant roles, across barley technologies. The results show that about 66.96%, 58.59%, 75.18%, 65.17%, and 75.99% of sample households were adopted an improved variety of barley, urea, dap, chemicals, manure, and crop rotation respectively. All the barley production technologies were complementary (i.e. urea, improved variety, dap, chemicals, manure, and crop rotation). Multivariate probit model results showed that Age of household head, Soil fertility, farm size, Training, and transportation cost affect the adoption of barley technologies negatively and significantly. Sex of household head, education level of household head, Farm income, tropical livestock unit, and access to credit affects adoption of barley technologies positively and significantly. Smallholder farmers were more likely to succeed than fail in jointly adopting barley technologies. Consequently, government policy and other concerned parties should emphasize the improvement of the institutional support system and decrease gender disparities in access to such institutions.
Adoption of Coffee Technologies and Their Impact on Annual Yield in Jimma Zone South Western Ethiopia
(Addis Ababa University, 2022-01) Megdelawit Temesgen; Sisay Debebe(PhD)
Sector of agriculture plays a significant role in Ethiopian economy. Ethiopia has huge potential to increase coffee production as it endowed with suitable elevation, temperature, and soil fertility, indigenous quality plantation materials, and sufficient rainfall in coffee growing belts of the country. Adoption of improved coffee varieties and slashing with a recommended period of time together have a significant effect on coffee production. The study was aimed to see the determinant of adoption of coffee technologies and their impact on annual yield of coffee in Jima zone south western Ethiopia. 196 sampled households from three woreda in the zone and 430 plots of 196 farmers household is considered in the survey. This study develops a multinomial logit and a multinomial endogenous switching regression model to see determinant of adoption and impact respectively. The study revealed four major results. First adoption rate and intensity of coffee variety is greater than the management practice. Second, adoption of coffee technologies constrained by different factor like land shortage, inaccessibility in technologies, lack of information and high cost of labor constraint farmers in adoption coffee technologies in addition to these constraints the disease and weeds which faces in farmers land leads them to replace coffee by chat. Third, from the multinomial logit model farmers adoption of coffee technologies determined by three major category these are farmers resource factor, the second determining factor is the institutional factor, the third factor farmers specific characteristics. Fourth, greater annual coffee yield obtained from simultaneous adoption of both improved coffee variety and management practice. This implies that policy makers, coffee breeders, extension service provider and other stakeholders promoting a combination of technologies can enhance annual coffee production. Key words: coffee technologies, yield, multinomial model, southwestern Ethiopia
Agricultural Technology Adoption and its Impact on Households’ Welfare in Rural Ethiopia: A Panel Data Analysis
(Addis Ababa University, 2021-08) Demeke, Anteneh; Gutu, Zelalem (PhD)
This study examined factors affecting agricultural technology adoption and its impact on farming households’ welfare in rural Ethiopia. Agricultural technology adoption can positively contributes to the welfare of smallholder farming households via improving crop yield and productivity. However, in most of the rural areas of Ethiopia the adoption rate is very low. Therefore, this study examines the determining factors in adopting agricultural technologies and its implied impact on welfare status of farming households. The study utilizes balanced panel data of Ethiopian Socio-economic Survey (ESS); which was collected by CSA of Ethiopia in collaboration with the World Bank in three rounds of wave during 2011/12, 2013/14 and 2015/16 in all regions of the country. The study employed logistic regression model as estimation criteria and the casual impact of technology adoption estimated by Difference-in-Differences combined with Propensity Score Matching (DID-PSM) techniques so as to assess the results robustness and their implied impact on households’ welfare. This helps to estimate the true welfare effect by cοntrοling unobserved heterogeneity and handle the problem of selection bias in treatment effects. The results show that adopters of agricultural technology had higher nominal total consumption expenditure per adult equivalent, per capita food consumption expenditure and per capita non-food consumption expenditure than non-adopter but the change was insignificant on per capita education expenditure; and this confirms that adoption of agricultural technologies has a positive and significant impact on household's consumption apart from per capita education expenditure. The study concluded that the need of a wide-ranging policy framework to confront constraints that promote the adoption of agricultural technologies so as to improve welfare of farming households in rural Ethiopia.
Analysis of Foreign Aid Effectiveness on Economic Growth in Ethiopia
(Addis Ababa University, 2023-06) Samuel Abebaw; Sisay Debebe (PhD)
Developing countries like Ethiopia need effective transformations if they are to experience rapid economic growth and raise the standard of living for their people. On the other hand, the saving-investment gap and foreign exchange constraint makes economic growth difficult. Consequently, to bridge the resource gap, the nation looks for aid from developed nations abroad. But the impact of foreign aid on economic growth has been hotly contested. Thus, the objective of the study is to analyze the effectiveness of foreign aid on economic growth in Ethiopia. The study used 30 years of secondary time series data over the period of 1991 to 2021. To analyze the data, the study employed multivariate cointegration method of analysis. The key variables examined are real GDP growth, aid as a percentage of GDP, investment (non-aid financed), labour force, and policy index variable (a composite of budget deficit, inflation, and trade openness). The Johansen cointegration test outcome showed the presence of cointegrating vector among the target variables. The study also employed a vector error correction model (VECM) to find out the relationship between these variables in the short and long-run. According to the result from the estimated model, the impact of foreign aid on real GDP growth is statistically significant and positive in the long-run. Ceteris paribus, on average a one percent increment in foreign aid brings about 3.56 percent increase in real GDP growth. Moreover, the outcome of the study calls for better strategies to mobilize domestic saving, creating favorable macroeconomic environment so that aid can be employed to bridge the saving-investment and foreign exchange gaps and boost economic growth
Analysis of Risk Factor Correlated With Child Malnutrition in Ethiopia and Modeling the Progression of Malnutrition with Child Age
(Addis Ababa University, 2021-02) Tefera, Mesay; Gebremedhin, Aregawi (PhD)
Although the problem of malnutrition affects the entire population, children are more vulnerable because it hinders their optimal physical growth, cognitive and socio-emotional development. undernutrition is associated with 45 percent of deaths of under 5 children. The solution for this serious public health issue is essential. From this perspective, this study aimed to identify the risk factor correlated with malnutrition and to examine the progression of malnutrition as child grows from his/her 1st to 15th birthday. The data for the study were taken from the Young Lives panel data for Ethiopia. To achieve objectives of the study, two malnutrition indicators (stunting and thinness) were studied. These indicators were examined independently due to their biological differences. Statistical models that handle the complexities of the panel data and transitional probability were employed. Marginal GEE Model, Generalized Mixed Effect Ordered Logistic Model and Markov Transitional Model used for analysis. The findings of the study revealed that sex of child, child age in month; mother education level, wealth index and number of drought animal own by household were found significant determinant factors of stunting. On the other hand, sex of child, child age in month, region, wealth index, number of drought animal own by household and number of small ruminate animal own by household were found significant determinant factor for thinness. Markova Transitional model analysis indicated that female children had the higher probability of recovering from both stunting and thinness than their male counterpart. To reduce child malnutrition, some curtail steps regards educating mothers and improving economic situation of population should be considered.
Analysis of Vulnerability to Food Insecurity in Rural Households’ of Ethiopia
(Addis Ababa University, 2022-06) Tsige Zeray; Sisay Debebe (PhD)
This study examines Analysis of vulnerability to food insecurity in rural households of Ethiopia, using a sample data of 3115 rural households from the Ethiopian socio economic Survey (ESS). Calorie method was employed to determine food insecurity and vulnerability. In addition to descriptive statistics, GLS and the Logit models was used to analyze the data. The Results indicates that, Majority of the households were found to be food insecure, which is 62.95% were found to be food insecure (1961 out of 3115) whereas the rest 37.05% of the households were found to be food secure. Furthermore, the estimated logit model result revealed that Rainfall shock, Death of livestock were positively and significant influence current food insecurity status of household, on the other hand, age of household head, Education level of the household head, annual household farm income, participation in off farm activity, access to credit and remittance were negatively affected the extent of households’ food insecurity. General Least Squares regression results indicate that Total land holding in ha of household head has a significantly positive correlation with calorie intake and Households access to credit significantly increase expectation of food consumption. Empirical finding also shows that rain fall shocks (environmental shocks) have larger impact on vulnerability to food insecurity. Based on the intensity of their vulnerability, households were grouped highly vulnerable-food secure (18.4 percent), and low vulnerable-food secure (45.84 percent).Overall, about 54.4 percent of households were categorized as vulnerable to food insecurity. Key words: Vulnerability as expected poverty, Vulnerability to food insecurity, Food insecurity, Ethiopia
Analysis of Vulnerability to Food Insecurity in Rural Households’ of Ethiopia
(Addis Ababa University, 2022-06) Tsige Zeray; Sisay Debebe (PhD)
This study examines Analysis of vulnerability to food insecurity in rural households of Ethiopia, using a sample data of 3115 rural households from the Ethiopian socio economic Survey (ESS). Calorie method was employed to determine food insecurity and vulnerability. In addition to descriptive statistics, GLS and the Logit models was used to analyze the data. The Results indicates that, Majority of the households were found to be food insecure, which is 62.95% were found to be food insecure (1961 out of 3115) whereas the rest 37.05% of the households were found to be food secure. Furthermore, the estimated logit model result revealed that Rainfall shock, Death of livestock were positively and significant influence current food insecurity status of household, on the other hand, age of household head, Education level of the household head, annual household farm income, participation in off farm activity, access to credit and remittance were negatively affected the extent of households’ food insecurity. General Least Squares regression results indicate that Total land holding in ha of household head has a significantly positive correlation with calorie intake and Households access to credit significantly increase expectation of food consumption. Empirical finding also shows that rain fall shocks (environmental shocks) have larger impact on vulnerability to food insecurity. Based on the intensity of their vulnerability, households were grouped highly vulnerable-food secure (18.4 percent), and low vulnerable-food secure (45.84 percent).Overall, about 54.4 percent of households were categorized as vulnerable to food insecurity. Key words: Vulnerability as expected poverty, Vulnerability to food insecurity, Food insecurity, Ethiopia
Assessment Of Factors Affects The Savings Of Micro And Small Enterprises In Addis Ababa: The Case Of Kirkos Sub City Trade Micro-Enterprinuers
(Addis Ababa University, 2021-06) Tolesa, Idosa; Denu, Berhanu (PhD)
The study determined assessed thefactors that affects the saving of micro enterprises in Addis Ababa: the case of Kirkos sub city trade micro-enterprinuers. A multistage cluster sampling technique was used to select 341 respondents for the study and questionnaire was used to elicit information from the respondents. Descriptive statistics and probit regression were used to analyze the data. From total sample of 341 micro and small enterprises 51.9 %( 177) of them are 31-35 age this is indication of a relatively they are youths .The result of probit regression shows a negative relationship between the income of respondents and their participation in financial institutions. This because, in these case respondents are merchants (business men) they prefer to work with the money rather than saving at financial institutions. The main financial constraints that affect performance of MSEs to participate in formal financial institutions were high interest rate on loanand high collateral requirement asked by financial institutions. The study recommends that,in order to facilitate access to credit for MSEs, (financial institutions) banks and MFIs make adjustments in interest rate, affordable collateral values as well as need to allocate a certain portion of their loanable funds for MSE entrepreneurs and expand their branches around to increase their accessibility.
Assessment Of Public Expenditure And Its Impact On Agricultural Growth In Ethiopia
(Addis Ababa University, 2021-02) Wondmagegne, Eden; Debebe, Sisay (PhD)
This research deals with identifying those public expenditure factors affecting agricultural growth in Ethiopia. The study is based on a time series data of 38 years from 1980/81 to 2018/19. During this period, the country’s economy has experienced both upswing and downswing in its agricultural sector. Government expenditure in different sectors including agriculture and its allied activities, education, health and roads construction is expected to promote agricultural growth. Here ARDL approach to co integration and an error correction representation of the ARDL model have been used due to certain advantages. The result of the Bounds test indicates the presence of a long-run co integrating relationship between the variables in the study. The results reveal that in the long-run, the effect of public expenditure through recurrent expenditure, on agricultural growth is significantly negative, while expenditure on education and health to enhance agricultural growth are significantly positive on the short-run that is in line with several earlier studies. Public expenditure in capital and roads construction to enhance agricultural growth is significantly negative in the short-run however public expenditure on capital, education, health, and roads construction to enhance agricultural growth do not significantly affect agricultural growth in the long-run. The discoveries reveal that prudent utilization of government expenditure cans possibly accelerate agricultural development and improve its efficiency.
The Contribution of Commercial Banks to Economic Growth of Ethiopia
(Addis Ababa University, 2021-01) Geletu, Hailemariam; Denu, Berhanu (PhD)
No country can ever have a healthy economy without a sound and effective banking system. In the system of modern economy, banks play a very sound role in economic development of country. They collect the surplus savings of the large group of population and make them available for those economic agents who have best investment opportunity. They also create new demand deposits in the process of granting loans and purchasing investment securities. They stimulate a country‟s economy through facilitation of economic activities. This research paper has made its focus to the empirical study of the contribution of commercial banks to the economic growth of Ethiopia by taking financial sector development indicator variables deposit, loan, asset and profit as an explanatory variables and RGDP as a dependent variable. The study empirically analyses the contribution of commercial banks to Economic Growth in Ethiopia using time series data over the period 2001-2020.After the data‟s are confirmed for normality, causality, serial correlation and collinearity tests a five variable time series Ordinary Least Squares regression analysis is employed to estimate the parameters. The result of this study, therefore, provides that there is positive and significant relation between the independent variables asset, deposit and loan with RGDP and a negative but significant association between profit and RGDP. And this could have a sound and comprehensive benefit to the study country.
Demographic Dynamics and Economic Development in Ethiopia By:
(Addis Ababa University, 2021-02) Bassie, Ermias; G/Mariam, Mulugeta (PhD)
The study is based on a time series data covering a time period of 1990 to 2019 and analyzed the relationship between population (with other demographic variables) and economic development (Real GDP per capita is used as a proxy). Considering econometric analysis, the study employed different tests such as unit root, co-integration, and Granger causality tests and vector error correction model. According to the estimation result, population Granger causes real GDP per capita i.e. only unidirectional causality which runs from population growth to economic development. Here working age population and young population granger causes real GDP per capita but not vice versa. But real GDP per capita didn’t cause them. On the other hand, real GDP per capita causes life expectancy at birth and aged population but not vice versa. In the long run population growth, working age population (WAPO) has positive and significant effect on economic development while young population group (CHPO), aged group (AGPO) has a negative and significant effect on economic development. As the finding above shows Ethiopia is under stage two of demographic transition which is characterized by lower death rate but higher birth rate. This shows the need to revise population policy and decrease fertility rate by using different family planning technics and contraceptive methods. So in line with decreasing fertility rate creating human capital development is a key for countries economic development. so greater attention must be given to this since Ethiopia has a promising segment of young population once very trained, educated and experienced its economy will expand. In addition to this improving the social and economic status of women is a key for a decrease in fertility rate. The development of old-age and other social security systems outside the extended family network can also be a solution to lessen the economic dependence of parents, especially women, on their offspring since the study indicated that aged population affects economic development significantly and negatively.
Determinant of Export Performance: Case of Agro Processing Industries in Ethiopia Using Time Series Analysis
(Addis Ababa University, 2023-02) Getachew Andualem; Berhanu Denu (PhD)
Globalization forces countries to take their comparative advantage in the global market. Export plays a vital role in economic development of a nation as well as for the development of the particular exporting companies. Although, the benefits derived from export of agro processing products in an increasingly globalized marketplace are enormous, but for many industries, exporting agro processing is constrained by numerous challenges. The purpose of the study was to investigate the major determinants of the export performance of the four selected commodities of Ethiopia namely: leather & leather products, meat and meat products and fruits & vegetables and beverage products. The paper empirically examined the export performance and its major determinant factors in the Ethiopian context using time series data for the period 1991 - 2021 using a secondary data. To analyze the relationship between the export commodities and their determinants, gross domestic products (GDP), foreign direct investment(FDI),real effective exchange rate (REER) and trade openness (TOP) ,inflation and infrastructure (road) were used, VAR model that was applied and estimating by ordinary least square (OLS) regression analysis with Time series data data. The result from econometric analysis revealed that the infrastructure (paved road in kilometer) is the only variable significantly and positively affects the export of the selected commodities. Similarly, GDP positively and significantly affects the export performance of leather & leather products and fruit & vegetable products .Foreign direct investment (FDI) has positive and significant effect on the export of meat, fruit & vegetable and beverage products. While trade openness (TOP) has negative coefficient and significant effect on the export of leather & leather products, meat and beverage products, but it has positive and statistical significant with on the export of fruit& vegetable products. Since all the export commodities were positively impacted by infrastructure (road), increasing quality and coverage of road development would bring a vital outcome for increasing the export performance of the agro processing commodities, which can be regarded as the key finding for the research. From the result, the study concluded that the export performance of the agro processing industries in Ethiopia have been affected by the independent macroeconomic variables. In general, due its potential the export of the agro processing product is increasing time to time. This is due to the fact that the government has prioritized the sector and as a result the agro processing sector is growing. But still there are various external and internal microeconomic and macroeconomic factors that are adversely affecting the export performance of the sector.
The Determinant Of Poverty Dynamics In Ethiopia
(Addis Ababa University, 2021-08) Seman, Lubaba; Gebremedhin, Aregawi (PhD)
This study examines the determinants of poverty dynamics in Ethiopia. Poverty reduction has been the crucial issue for the development of the nation. But alleviating poverty has becomes difficult due to the structure and complexity of poverty. It became more unsolvable with policies and development programs. This study applies the spell approach of poverty experience and the ordered logit model to identify the poverty status of households: poor, transient poor (-), transient poor (+) and non-poor. Observing the ESS balanced panel dataset of 2011/12, and 2013/14 covering 3,777 rural households, from the study finding 70.13% of poor households classified as chronic poor (remained poor in two periods) while 8.93% of non-poor households are vulnerable to being transient poor (-). And observing the ESS balanced panel dataset of 2013/14, and 2015/16 covering 4,547 households, the study finding is 43.39% of poor households classified as chronic poor (remained poor in two periods) while 18.76% of non-poor households are vulnerable to being transient poor (-) Our estimations confirmed that the important factors of poverty dynamics in Ethiopia are occupation of household head, ownership of house, dependency ratio, number of household members, distance from the market, non-farm income, educational status of household head, and age of household head. The finding implies that in the rural part of Ethiopia chronic poverty is higher.
Determinants of Agricultural Input Technologies Adoption by Smallholder Farmers in Rural Amhara Regional State, Ethiopia
(Addis Ababa University, 2023-06) Senawit Tegegn; Sisay Debebe (PhD)
The adoption of agricultural technology is an important route for raising agricultural productivity, and thereby for increasing food security status; over the past several years, a great deal of technologies has been developed. However, small-scale farmers only embraced a small portion of these technologies. So it is essential to comprehend and to be informed the obstacles to adoption of modern agricultural technologies quite crucial to develop and distribute practical technologies to farmers. Despite countrywide initiatives to encourage adoption, the rates have generally been minimal. This study investigates the determinants of agricultural input technologies adoption by smallholder farmers in rural Amhara regional state, Ethiopia, the study is based on an Ethiopian socio-economic survey of 2018/19 and a sample of 487 farm households is considered. Descriptive and econometric analysis tools were used. The results show that about 15.61%, 88.09%, 60.99%, 40.66%, and 32.44% of sample households adopted improved seed, crop rotation, chemical fertilizer, pesticide, and herbicide respectively. Technologies were complementary and Smallholder farmers were more likely to succeed than fail in jointly adopting agricultural technologies. The paper uses a multivariate probit model to assess the factors affecting the adoption decision of agricultural technology. The result shows that farmers with more educational level, extension service, sex, age, oxen power, soil quality, and access to irrigation, erosion, credit access, advisory service, and distance from the market are more likely to adopt new or improved agricultural technology. Accordingly, the study recommends the need of policies and interventions on adoption of agricultural technology should pay attention and move along with those variables significantly influencing adoption of agricultural technology and other concerned parties should emphasize the strengthening of the institutional support network
Determinants of Foreign Direct Investment in Ethiopia
(Addis Ababa University, 2023-06) Biyazn Yeserah; Sisay Debebe (PhD)
The study examines determinants of FDI in the Ethiopian from 1992-2022 using annual time series secondary data. The sectorial distribution of FDI, trends and the performance of FDI across sectors and sub were also analyzed. In the last three decades the performance of FDI has been fluctuated. Industrial sector was in the upper hand in terms of the absorbing the line share of FDI inflow in Ethiopia. ARDL model was utilized to test the long and short run relationships between dependent and independent variables. Among seven explanatory variables government spending, human capital real effective exchange rate and inflation squared were significant influencer of FDI in the long run in their respective 1%, 5% and 10% level of significance. However human capital as proxied by secondary school enrolment has a reversal effect in the long run and the short run. In the long run human capital has a positive influence, but in the short run it has negative effect. While domestic investment negatively affects FDI in the short run. Therefore, it is recommended that the government work more to increase the implementation and operation of the FDI. The governments should also provide policy privilege in some industrial sub sectors like electricity and mining, and in the services sector particularly in education sub sector. Policy makers and the government should consider the impacts of government expenditure, exchange rate and human development in affecting FDI through their channels
Determinants of Foreign Direct Investment Inflow to Ethiopia: A Time Series Analysis
(Addis Ababa University, 2022-01) Yalew Mengistie; Mulugeta G/Mariam (PhD)
The main aim of this paper is to identify the key determinant factors of FDI inflows to Ethiopia for the period 1991 to 2020 using autoregressive distributed lag model (ARDLM) with Error Correlation Methods. The empirical results reveal that trade openness, domestic market size, inflation rate, and political stability and absence of violence are the key determinant factors of FDI inflows to Ethiopia. Moreover, human capital and government effectiveness are also important determinant factors of FDI inflow in the short run, while infrastructure facility is a fundamental determinant factor in the long run. Among these factors, at 5% level of statistical significance, trade openness, and domestic market size affect FDI inflow positively both in the short run and long run, whereas inflation rate, and political stability and absence of violence have negative and statistically significant effect in both cases. On the other hand, government effectiveness and human capital associated with FDI inflow to Ethiopia positively in the short run. Besides, infrastructure facility development has statistically significant effect on FDI inflow in the long run. Hence, these findings implies that minimizing barriers to trade, improving domestic market size and infrastructure facilities, creating more stable macroeconomic and political environment, giving due attention to well-organized system of education, and having effective governance system are also crucial to attract more FDI to Ethiopia. Keywords: FDI, Ethiopia, Determinant, ARDL Model, Bound Test, ECM
Determinants of Foreign Direct Investment Inflow to Ethiopia: A Time Series Analysis
(Addis Ababa University, 2022-01) Yalew Mengistie; Mulugeta G/Mariam (PhD)
The main aim of this paper is to identify the key determinant factors of FDI inflows to Ethiopia for the period 1991 to 2020 using autoregressive distributed lag model (ARDLM) with Error Correlation Methods. The empirical results reveal that trade openness, domestic market size, inflation rate, and political stability and absence of violence are the key determinant factors of FDI inflows to Ethiopia. Moreover, human capital and government effectiveness are also important determinant factors of FDI inflow in the short run, while infrastructure facility is a fundamental determinant factor in the long run. Among these factors, at 5% level of statistical significance, trade openness, and domestic market size affect FDI inflow positively both in the short run and long run, whereas inflation rate, and political stability and absence of violence have negative and statistically significant effect in both cases. On the other hand, government effectiveness and human capital associated with FDI inflow to Ethiopia positively in the short run. Besides, infrastructure facility development has statistically significant effect on FDI inflow in the long run. Hence, these findings implies that minimizing barriers to trade, improving domestic market size and infrastructure facilities, creating more stable macroeconomic and political environment, giving due attention to well-organized system of education, and having effective governance system are also crucial to attract more FDI to Ethiopia. Keywords: FDI, Ethiopia, Determinant, ARDL Model, Bound Test, ECM
Determinants of Growth Potential and Constraints of Micro and Small Enterprises in Lideta Sub City of Addis Ababa City Administration, Ethiopia
(Addis Ababa University, 2021-02) Soboka, Diro; Denu, Berhanu (PhD)
The general objective of this study was to assess the growth potential and identify the constraints of MSEs operating in Lideta Sub City of Addis Ababa City Administration. The study was adopted descriptive and explanatory research design with qualitative and quantitative approaches of cross sectional data collected from primary and secondary sources through a structured questionnaire, observations and interviews. The sample size was determined by using slovin’s formula and contained 162 samples of MSEs that are grouped into sectors of manufacturing, construction, service, trade and urban agriculture. These samples were selected from each sector using proportional stratified random sampling method. The data were analyzed with linear regression analysis of Ordinary Least Square technique and summary statistics. The findings revealed that current capital, gender and education are found to be significant factors that affect MSE growth positively and statistically significant. The findings also showed that initial capital and experience are statistically significant and negatively associated with the growth of enterprises by employment. However, source of finance, family size and age are found to be statistically insignificant variables in this study. Policy makers and other stakeholders should reconsider financing strategy for MSEs and firms of MSEs with lower capital should take actions towards better improvement of their growth potential. The government actors and other stakeholders should give due attention to gender difference appearing in the participation of MSE operation. The potential limitations of this study were time and financial constraints. Finally, future panel surveys and availability of other data may call for further studies in order to have inclusive solution for the constraints of MSE growth.
Determinants of Private Saving in Ethiopia
(Addis Ababa University, 2021-08) Tafese, Assefa; Gutu, Zelalem (PhD)
The objective of this paper was to investigate the determinants of private saving in Ethiopia using time series annual data form 1991/92-2019/20. The study applies the augmented Dickey Fuller test for stationarity and Johansson co-integration test used to determine whether there is a long run relationship between variables. Vector error correction model is applied to estimate both short and long run models related with private saving in Ethiopia. The estimated results indicate that, Inflation (IF), Real interest rate (RIR), age dependency ratio (ADR) and private final consumption expenditure (PCE) affect private saving negatively. While Deposit interest (DR) and per capita income (PCI) are affect private saving positively in the long run. Inflation (IF),deposit interest rate (DR) and real interest (RIR) are significant determinants of private saving both in the long run and short run, whereas age dependency ratio, per capita income and private consumption expenditure are significantly affect private saving in the long run. The findings of the study underlined ensure stable and low inflation rates which would help improve real incomes. The government should continue its effort to push for increases economic growth which will translate to increased incomes and savings
Determinants of Unemployment in Ethiopia
(Addis Ababa University, 2023-06) Zeru Nikedimos; Berhanu Denu (PhD)
The unemployment rate has been the most persistent issue in both developed and developing nations. Thus, all the relevant ideas, key factors, and concepts had been discussed at first including the macroeconomic factors that affect the unemployment rate in Ethiopia. This study is an attempt to investigate the determinants of unemployment in Ethiopia. The yearly data was used from the period 1990 to 2021. Unit root test is used to check the stationarity of the variables and employed Autoregressive Distributed Lag Model (ARDL) regression method. In Addition, Nonlinear ARDL model has been employed to detect the symmetric impact of different variables on unemployment rate in Ethiopia. When we come to the long run ARDL result all four variables namely (economic growth, real effective exchange rate, inflation and foreign direct investment) were a significant determinant of unemployment rate in Ethiopia. , in the long run, the lag of the natural logarithm of total unemployment has a positive and significant effect on the current unemployment level. The effect of economic growth on the level of unemployment in the long run, economic growth expressed as (natural logarithm of RGDP) has a negative and significant effect on the unemployment rate. Slow economic development dynamics will raise the long-term unemployment rate (non-employment growth). All variables except foreign direct investment affect unemployment rate negatively they decrease Unemployment, while foreign direct investment affect unemployment rate positively. Finally, the researcher recommended that the Ethiopian government should to consider in its policies and strategies to create more jobs and to efficiently utilize the abundant labor force available in the country. Moreover, the government authorities should efficiently utilize the capital resource generated locally or donations and grants from abroad (like the revolving fund) in job creation

Browse

Browsing Development Economics by Title

Results Per Page

Sort Options