College of Business and Economics

Permanent URI for this college

http://etd.aau.edu.et/handle/123456789/1

Browse

Browsing College of Business and Economics by Title

Now showing 1 - 20 of 6814
  • No Thumbnail Available
    Item
    A Critical Analysis of The Practice of Fiscal Federalism In Ethiopia: The Case of Oromia and Afar Regional States (1991–2015)
    (AAU, 2023-06-10) Samson Mesfin; Tegegne Teka (PhD)
    The main objective of this dissertation was to assess the practices of fiscal federalism in Ethiopia (1995- 2015) with reference to Federal-Regional interface and Woredas (districts) context by selecting two Regional States; namely Oromia (representing the relatively 'developed regions') and Afar (representing the 'emerging regions'). The study employed more of qualitative research approach to achieve the objective mentioned above. Both Primary and secondary data sources were used in gathering relevant data for the study. The techniques that have been used for gathering primary data are in-depth interview and discussion with key-informants at all levels of governments focusing on group discussion with local communities and field observation. Secondary data were gathered from published and unpublished materials available in various forms including books, journal articles and official annual reports of government institutions at federal, regional and local levels. The study also reviewed the experiences of some federal countries around the world on the issue of fiscal federalism with the aim of obtaining best practices and use as input in modifying the decentralized fiscal system of Ethiopia. To analyze the date gathered through above means, the study employed both qualitative and quantitative methods of data analysis. The findings of the study indicated that the Constitutional assignment of expenditure responsibility in Ethiopia is more or less in compliance with the theoretical literature of fiscal federalism while the assignment of taxation power does not agree with the theoretical and empirical literatures of fiscal federalism. The practice, however, shows lack of clarity on the assignment of power and fiscal responsibilities, particularly on shared responsibilities. As the result, it creates duplication and overlapping responsibility problems and may lead to conflict between federal and regional governments as well as regional and local governments. The findings also show that the devolution of expenditure responsibilities to the sub-national governments (SNGs) is not accompanied by adequate financial resources, resulting in high vertical and horizontal fiscal imbalances in Ethiopia. As the result, SNGs in Ethiopia rely heavily on federal transfers to cover the costs of the functions that devolved to them by laws. This, in turn, limits the fiscal autonomy of authorities at sub-national levels, which adversely affected the efficiency of public service delivery and accountability at the grass root levels. Overall, the study found out that there are several problems and challenges faced while implementing fiscal decentralization at sub-national levels in Ethiopia. It includes lack of clarity in the assignment of power and fiscal responsibilities, particularly on shared responsibilities; lack of fiscal autonomy due to insufficient own revenues; weak administration and institutional capacity. This happened because of lack of trained and experienced human resources; poor political willingness and commitment of authorities at higher level to devolve taxing and spending powers in real sense; as well as lack of a stable, predictable and transparent intergovernmental fiscal transfer system. Thus, the research recommends that the federal government should give more emphasis to enhance the fiscal autonomy of sub-national governments so as to realize the potential benefits of effective fiscal federalism in Ethiopia
  • No Thumbnail Available
    Item
    A Critical Analysis of the Practice of Fiscal Federalism in Ethiopia: the Case of Oromia and Afar Regional States (1991–2015)
    (AAU, 2023-06-10) Samson Mesfin; Tegegne Teka (PhD)
    The main objective of this dissertation was to assess the practices of fiscal federalism in Ethiopia (1995- 2015) with reference to Federal-Regional interface and Woredas (districts) context by selecting two Regional States; namely Oromia (representing the relatively 'developed regions') and Afar (representing the 'emerging regions'). The study employed more of qualitative research approach to achieve the objective mentioned above. Both Primary and secondary data sources were used in gathering relevant data for the study. The techniques that have been used for gathering primary data are in-depth interview and discussion with key-informants at all levels of governments focusing on group discussion with local communities and field observation. Secondary data were gathered from published and unpublished materials available in various forms including books, journal articles and official annual reports of government institutions at federal, regional and local levels. The study also reviewed the experiences of some federal countries around the world on the issue of fiscal federalism with the aim of obtaining best practices and use as input in modifying the decentralized fiscal system of Ethiopia. To analyze the date gathered through above means, the study employed both qualitative and quantitative methods of data analysis. The findings of the study indicated that the Constitutional assignment of expenditure responsibility in Ethiopia is more or less in compliance with the theoretical literature of fiscal federalism while the assignment of taxation power does not agree with the theoretical and empirical literatures of fiscal federalism. The practice, however, shows lack of clarity on the assignment of power and fiscal responsibilities, particularly on shared responsibilities. As the result, it creates duplication and overlapping responsibility problems and may lead to conflict between federal and regional governments as well as regional and local governments. The findings also show that the devolution of expenditure responsibilities to the sub-national governments (SNGs) is not accompanied by adequate financial resources, resulting in high vertical and horizontal fiscal imbalances in Ethiopia. As the result, SNGs in Ethiopia rely heavily on federal transfers to cover the costs of the functions that devolved to them by laws. This, in turn, limits the fiscal autonomy of authorities at sub-national levels, which adversely affected the efficiency of public service delivery and accountability at the grass root levels. Overall, the study found out that there are several problems and challenges faced while implementing fiscal decentralization at sub-national levels in Ethiopia. It includes lack of clarity in the assignment of power and fiscal responsibilities, particularly on shared responsibilities; lack of fiscal autonomy due to insufficient own revenues; weak administration and institutional capacity. This happened because of lack of trained and experienced human resources; poor political willingness and commitment of authorities at higher level to devolve taxing and spending powers in real sense; as well as lack of a stable, predictable and transparent intergovernmental fiscal transfer system. Thus, the research recommends that the federal government should give more emphasis to enhance the fiscal autonomy of sub-national governments so as to realize the potential benefits of effective fiscal federalism in Ethiopia
  • No Thumbnail Available
    Item
    A Critical Analysis of the Revised Ethiopian Commercial Code in Light of OECD’s Principles of Corporate Governance with Emphasis on Roles and Responsibilities of the Board of Directors of Share Companies
    (Addis Ababa University, 2022-06) Million Alemu; Mengistu Bogale (PhD)
    The aim of this study is to critically analyze the roles and responsibilities of BoDs of SCs as contained in RCC and Banks’ Corporate Governance vis-à-vis the Principles that are included as in OECD’s Principles, which are accepted as the international best practice to be emulated. The study has utilized a qualitative research approach and exploratory research design. The theoretical and empirical reviews of the pertinent literature, as well as the interview conducted, have revealed that RCC has gone leaps and bounds in embodying what is expected by the sixth principle of OECD. Yet, there are still observable lacunae like failing to require ethical standards from BoDs, failing to mandate BoDs to decide on remuneration issues, and failing to put a requirement in place that ensures disclosure and communication mechanism. All of these and other deficiencies of RCC relating to corporate governance call for promulgation of a Code of Corporate Governance by the Ethiopian Council of Ministers that obliges all financial and non-financial SCs and a Directive by MoTRI the ensures the effective implementation of the Regulation to be passed by the Council of Ministers. An autonomous government organ that oversees the effective implementation of the Code of Corporate Governance should also be established
  • No Thumbnail Available
    Item
    A Critical Assessment of the Practices of Fiscal Federalism in Ethiopia: The Case of Oromia and Afar Regional States (1991–2015)
    (AAU, 2023-06-23) Samson Mesfin; Dr. Tegegne Teka
    The main objective of this dissertation was to assess the practices of fiscal federalism in Ethiopia (1995- 2015) with reference to Federal-Regional interface and Woredas (districts) context by selecting two Regional States; namely Oromia (representing the relatively 'developed regions') and Afar (representing the 'emerging regions'). The study employed more of qualitative research approach to achieve the objective mentioned above. Both Primary and secondary data sources were used in gathering relevant data for the study. The techniques that have been used for gathering primary data are in-depth interview and discussion with key-informants at all levels of governments focusing on group discussion with local communities and field observation. Secondary data were gathered from published and unpublished materials available in various forms including books, journal articles and official annual reports of government institutions at federal, regional and local levels. The study also reviewed the experiences of some federal countries around the world on the issue of fiscal federalism with the aim of obtaining best practices and use as input in modifying the decentralized fiscal system of Ethiopia. To analyze the date gathered through above means, the study employed both qualitative and quantitative methods of data analysis. The findings of the study indicated that the Constitutional assignment of expenditure responsibility in Ethiopia is more or less in compliance with the theoretical literature of fiscal federalism while the assignment of taxation power does not agree with the theoretical and empirical literatures of fiscal federalism. The practice, however, shows lack of clarity on the assignment of power and fiscal responsibilities, particularly on shared responsibilities. As the result, it creates duplication and overlapping responsibility problems and may lead to conflict between federal and regional governments as well as regional and local governments. The findings also show that the devolution of expenditure responsibilities to the sub-national governments (SNGs) is not accompanied by adequate financial resources, resulting in high vertical and horizontal fiscal imbalances in Ethiopia. As the result, SNGs in Ethiopia rely heavily on federal transfers to cover the costs of the functions that devolved to them by laws. This, in turn, limits the fiscal autonomy of authorities at sub-national levels, which adversely affected the efficiency of public service delivery and accountability at the grass root levels. Overall, the study found out that there are several problems and challenges faced while implementing fiscal decentralization at sub-national levels in Ethiopia. It includes lack of clarity in the assignment of power and fiscal responsibilities, particularly on shared responsibilities; lack of fiscal autonomy due to insufficient own revenues; weak administration and institutional capacity. This happened because of lack of trained and experienced human resources; poor political willingness and commitment of authorities at higher level to devolve taxing and spending powers in real sense; as well as lack of a stable, predictable and transparent intergovernmental fiscal transfer system. Thus, the research recommends that the federal government should give more emphasis to enhance the fiscal autonomy of sub-national governments so as to realize the potential benefits of effective fiscal federalism in Ethiopia. Fiscal Federalism, Assignment of expenditure, taxing responsibility, vertical fiscal imbalance, Fiscal autonomy and Intergovernmental fiscal transfer
  • No Thumbnail Available
    Item
    A normal-Weighted Exponential Stochastic Frontier Model
    (A.A.U, 2022-06-15) Misgan Desale; Adane Tufa (PhD)
    This thesis introduces a new stochastic frontier model called a normal-weighted exponential stochastic frontier model. We have derived a closed form log-likelihood function and JLMS inefficiency estimator of a normal-weighted exponential stochastic frontier model. In addition, we have derived the gradient and hessian matrix of a normal-weighted exponential stochastic frontier model. A Monte Carlo (MC) simulation is carried out to verify the correctness of the derivations, of a normal-weighted exponential stochastic frontier model, and to study the finite sample properties of maximum likelihood estimator. Our simulation result shows that a normal weighted exponential stochastic frontier model performs well compared to a normal-exponential stochastic frontier model. In our simulation result, it shows that as sample size increases the bias and standard errors decreases. Moreover, a real data application is performed, and it is about estimation of carbon efficiency of manufacturing firms in Africa. We have estimated an input requirement production function, using fuel consumption as dependent variable and output and other inputs as independent variables. Our estimated result shows that the estimates of coefficients are the same across models. However, there is differences in carbon efficiency estimates of manufacturing firms. Using a normal-half normal stochastic frontier model, a carbon efficiency of manufacturing firms in Africa gives an estimate ranging between 1.002344 (99.8984%) and 1.002362 (99.8976%). For a normal-exponential stochastic frontier model the range of carbon inefficiency estimates are between 1.074752 (97.5092%) and 1.090364 (96.3126%). Similarly, for a normal-weighted exponential stochastic frontier model the carbon inefficiency estimates are between 1.122895 (95.0907%) and 1.237519 (91.1602%). We have used the carbon efficiency estimates to rank African countries and Egypt is the most carbon efficient country in Africa. We have also run a multiple linear regression on carbon inefficiency estimates to see the determinants. In all three stochastic frontier models: top manager work experience, obstacle to access finance, firm size, export status, and foreign ownership are the key determinants.
  • No Thumbnail Available
    Item
    A Path to Low Carbon and Climate Friendly Transport Sector in Addis Ababa: System Dynamics Approach
    (AAU, 2023-06-18) Kaleab Enyew; Mengesha Yayo (PhD)
    Urban transportation system is a complex system with multiple variables and nonlinear feedback loops and influenced by transportation, social, economic, and environmental factors. Conventional transportation modeling approaches are unsuitable to simulate and evaluate its performance. This paper presents a system dynamics approach based on the cause-and-effect analysis and feedback loop structures. The proposed SD model comprises population, economic development, number of vehicles, environmental influence, travel demand and transport supply. The model runs in Vensim PLE software using the data from Addis Ababa, Ethiopia. The impacts of different policy scenarios on transportation system related carbon emission are analyzed. Ban imports of used vehicle, Energy shift and setting emission standard have the capacity to reduce carbon emission with the magnitude of 17%, 59% and 43% respectively by 2030. The study suggests that a combination of policies to achieve a low carbon and climate-friendly transport sector which will result a 74% decrease in carbon emission by 2030
  • No Thumbnail Available
    Item
    A Project Submitted in Partial Fulfillment of The Requirements for The Degree of Master of Business Leadership
    (Addis Ababa University, 2023-06) Alazar Adula; Seifu Mamo (Associate Professor)
    In the present business environment of accelerated volatility, uncertainty, complexity and ambiguity (VUCA), as experienced in Ethiopian Banking industry, the researcher found the area of organizational agility (proactive, flexible, responsive and speedy systems), as the one less researched. In this view, the researcher tried to measure the effect of organizational agility components on the organizational effectiveness of Gada Bank, Ethiopia. The study was made by employing an explanatory research design and collecting primary data from the board of directors and the management of the bank. A structured questionnaire was distributed to 86 respondents out of which 78 were responded. The finding of both descriptive and multiple linear regression analysis showed that organizational agility components like leadership, technological and HR agility have positive and statistically significant effects on organizational effectiveness of Gadaa Bank while the components like structural agility and process agility were found to be statistically insignificant. Based on the findings, the researcher recommends the bank to institute optimum level of agility to its systems and operations so as to gain and sustain competitive advantages while also overcoming challenges and uncertainties that could be posed by internal and external VUCA environments
  • No Thumbnail Available
    Item
    A Qualitative Descriptive Study of Monitoring And Evaluation Practice in International Livestock Research Institute Livestock Projects
    (Addis Ababa University, 2022-07) Rossi Haile; Bantie Workie (PhD)
    Monitoring and Evaluation (M&E) is the combination of monitoring and evaluation which together provides the knowledge required for effective project management, reporting and accountability of responsibilities. Since agriculture is a critical industry in nations such as Ethiopia and it is the greatest contributor to total economic growth and poverty alleviation, the focus of this study are livestock projects implemented in International Livestock Research Institute (ILRI), Ethiopia. ILRI is a non-profit international agricultural research organization committed to improve the lives of people in developing countries via livestock research. This project work is meant to study how M&E practices are used in livestock projects implemented by ILRI Ethiopia. To undertake this, a descriptive research design with a qualitative data was used to gather data from fifteen interviewees from five case projects. The analysis was made using computer aided approach which is coding using Microsoft Word. Findings from the study show that the case projects are familiar with M&E plan. M&E stakeholder participation, M&E human resource capacity and M&E training and these components are really impactful on the performance of the projects. Regular amendment of M&E plans, consideration of additional stakeholders and regular provision of M&E trainings are the key recommendations for projects implemented in ILRI. Further researches with reduced bias and inclusive of other M&E practices are suggested. Key Words: Monitoring, Evaluation, Plan, Stakeholder Participation, Human Resource Capacity, Training, Project Performance
  • No Thumbnail Available
    Item
    A Qualitative Study of the Ethiopian Meat and Meat Product Export Industry: Challenges, Opportunities, Strategies, Impacts, and Competitiveness
    (AAU, 2024-01-17) Meron Aregay Belachew; Ethiopia Legesse Segaro (PhD)
    Despite having Africa's largest cattle population, Ethiopia struggles to export meat due to various challenges in the livestock value chain. This qualitative study examines the challenges and opportunities faced by Ethiopian meat and meat product exporters in the global market, focusing on three aspects: government policies and macroeconomic factors, product quality and marketing strategies, and competitive advantages of Ethiopian meat exporters based interview. Interviews were used to collect data by asking different stakeholders in the industry, such as meat and meat byproduct exporters, livestock animal exporters, licensing bodies, banks, research institutes, quality controllers, logistic experts and associations. The interviews were coded and themed in NVivo 14. Based on the analysis, the main challenges for Ethiopian meat exporters that are currently affecting their business majorly are supply shortage and high production cost. The distribution strategy analysis shows that air transportation is preferred for chilled meat exports to the Middle East site has to reach to destination site freshly without spoilage, while sea transportation is used for meat by-products and some regions with high air costs. Ethiopian meat exporters mostly sell chilled meat to the Middle East, where Dubai takes the lead, meat by products to Far East Asia, and live cattle and camels to Egypt and Somalia, according to the analysis of meat export destination. Analysis of business strategy showed that pricing was the most important factor for the respondents. The export market analysis shows that a distinctive and appealing flavor makes Ethiopian meat and meat products competitive in the Middle East, despite higher pricing, with target market selection remaining crucial. Based on the analysis on factors to meat export success, respondent’s response were peace and stability, effective livestock regulations, ranch ownership, export standard compliance, illegal trade prevention, system modernization, market expansion, and value chain expansion as crucial success factors for meat and animal exports, with peace and stability ranked highest. Respondents emphasized that Ethiopian government policies and the overall Ethiopian economy significantly affect the meat export sector. Meat export brings foreign currency for Ethiopia, which has the largest livestock population in Africa and can take advantage of its geographic closeness to reduce expenses and time. The Ethiopian meat export sector can expand its markets and products by finding new customers and opportunities in the Middle East, Asia, US and Europe, and by creating more value added products such as processed meat by obtaining the required certificate for quality assurance
  • No Thumbnail Available
    Item
    A Research Paper on: Factors Affecting Resource Mobilization and Utilization By Ngos in Ethiopia: The Case of Selected International Ngos
    (A.A.U., 2023-06-07) Wondwosen Ketema; Habtamu Berhanu (Dr.)
    The study mainly intends to explore factors that affect resource mobilization and utilization among selected International NGOs operating in Ethiopia. It is necessary to evaluate factors that affect resource mobilization and utilization, eighteen NGOs and donor related government authority audit firm were considered as a case study. The research used a mixed research approach by which both descriptive and explanatory. The study included 100 participants and due to the small target population, this study used the entire population. The quantitative and qualitative study was conducted to collect information from primary and secondary sources. For this research, a structured and standardized questionnaire was conducted. The data were analyzed by using the STATA software system to analyze the collected data which have been presented using tabulation. According to the conclusion of the study, strategies of resource mobilization adopted by NGOs, external factors and donor financial and associated requirements are important variables influencing the resource mobilization and utilization selected international NGOs. The study recommends that to meet effective resource mobilization and utilization, NGOs should emphasize on factors of resource mobilization and utilization such as strategies of resource mobilization, external factors, and the effect of donor financial and associated requirements
  • No Thumbnail Available
    Item
    A Study of Financial Performance of Private Banks; Evidence from the Case of Selected Private Banks in Ethiopia
    (A.A.U, 2023-07-08) Araya Getachew; Demeke Chimdessa (PhD)
    Evaluating the technical and operational efficiency of banks is a key consideration to assess the performance of banks. Besides making sure optimum level of capital, achieving enough liquidity and allowing appropriate expense management are the key determinant of financial performance of banks. In various studies different methods are applied to evaluate banks’ performance. The most common method of financial performance measurement is based on balance sheet and income statement analysis. The main purpose of the study at hand is to evaluate the financial performance of the selected dominant private Banks in the Ethiopian financial market. The study further provided evidence of how the dominant private bank has been financially performing over the course of 10-yearperiod. Audited annual reports from online resource of a total of three dominant private banks covering the year 2013 to 2022 were used in the study. This study applies analytical tools by using ratio analysis and panel data using regression equation based on audited financial statements. The research found out that according to financial ratio analysis tools Awash bank showed a highest performance in the ratios for the period whereas Dashen bank performed better than Abyssinian bank during the period. Furthermore, on both panel fixed model estimations of log of return on asset and Log of return on equity, Liquidity Management and Management efficiency in log form are explanatory variables that are major determinants.
  • No Thumbnail Available
    Item
    A Study on Effectiveness of Selected Human Resource Management Practices in Pave Logistics and Trading PLC
    (Addis Ababa University, 2022-06) Abel Shibru; Adane Atara (PhD)
    HRM practices are the most essential and critical approach for accomplishing organizational goal. Now a days company can get a strong competitive advantage through their human resources via applying effective HRM practices. The main objective of this research was, to study the effectiveness of selected human resource management practices. Those are recruitment and selection, training and development, and reward and compensation practices. To collect the essential data for the study, questionnaires were distributed, collected and analyzed from 66 respondents using simple random sampling technique. The analysis was done using SPSS statistical software version 25 and the finding shows that high level of effectiveness on recruitment and selection practices, hence Training and development, and reward and compensation practice achieved medium level of effectiveness. The study recommended that the PLT management and human capital practitioners need to improve recruitment and selection practice by forming a scouting team to design strategy of checking on high potential that develops the company, training PLT essentially implement post training evaluation to observe reaction, learning behavior and result of the trainee. The least graded practice in PLT is reward and compensation practice the researcher recommends PLT to revise its reward and compensation policy in regard of pay scale and benefit schemes. Keywords: Effectiveness of HRM practice, recruitment and selection, training and development, reward and compensation, PTL
  • No Thumbnail Available
    Item
    A System Dynamic Analysis for Cement Production and Carbon Emissions in Ethiopia
    (AAU, 2023-06-01) Shimelis Fikre; Alemu Lambamo (PhD)
    Cement production in Ethiopia is backbone for economic development by constructing large projects such as Grand Ethiopian Renaissance Dam (GERD), Mega Projects, road, etc. Conversely, the concentration of CO2 emissions from cement sector is challenging issue to future climate changes. Over time the demand for cement is increasing for housing and infrastructure development, while the productivity of cement production among the factory is yet poor. Most cement industry in Ethiopia use combustion of imported fossil fuels. However, these leads to high concentration of CO2 emission, productions inefficiency, high cost of operations, loss of productions due to various problem such as shortage of power, spare part, etc. and vulnerability to climate change severity in Ethiopia. This study simulates and develops System Dynamic Model for cement sector to explore endogenous behavior of variables within the model, using Causal Loop Diagram and Stock-Flow Diagram. According to simulation of this study, at end of 2030 the CO2 emission from cement industry is more than double, about 8.92mill. tonsCO2 as compared to 4.37 mill. tonsCO2 in 2022, as well cement production also doubles at the end of 2030 about 16.28 mill. tons. Thus, depict that the carbon emissions proportionally increasing with cement productions. Therefore, the study recommends to utilizes alternative renewable energy resource and modern technological kiln processor to improve their energy efficacy and more productive as well as cope environmental burden of carbon emissions from cement sector of Ethiopia.
  • No Thumbnail Available
    Item
    Access to Bank Loans, Income Distribution and Economic Growth in agent Based Modeling: Evidence from Evolutionary Perspective
    (Addis Ababa University, 2017-06) Atnafu, Gebremeskel; Almas, Heshmati (Prof)
    This doctoral dissertation consists of three inter-related studies which constitute its main text, with introductory and summary chapters. The three main studies share a common feature in that they investigate the link between access to bank loans, income distribution and productivity growth. The second chapter is a theoretical framework that uses agent-based computational economics (ACE) to detect the link between access to bank loans and functional income distribution. The third chapter uses Ethiopian firm-level and national income data to validate the second chapter. The fourth chapter investigates the effect of functional income distribution on productivity growth from an evolutionary economic perspective. The second chapter (first study) focuses on Dosi et al.’s (2013) agent-based model which assumes that a well-functioning banking system exists and that industries are composed of both capital and non-capital goods’ producing sectors. As such, monetary policy has a minimal role in impacting functional income distribution leading to an active use of macroeconomic policy. Chapter 2 modifies this model to capture the realities of developing countries where the banking system’s supply of services is smaller than what is considered optimal. The system is heavily influenced by inside agents and industries are dominated by non-capital goods’ producing firms.The modified model theoretically links firms’ access to bank loans and functional income distribution in agent-based modeling. The results based on the modified model indicate that when firms have access to bank loans, functional income distribution improves. Unlike many firm level studies which focus on the firms per se, Chapter 2 argues that it is possible to utilize firms’ economic actions and their access to bank loans to explain how income inequalities are generated and evolve over time. Theoretically the chapter finds that personal income distribution is an emergent phenomenon. This result is in agreement with Thomas Schelling’s ‘Micromotives and Macrobehaviour,’ where he established aggregate behavior as an emergent phenomenon. Its major conclusion is that access to bank loans at the firm level improves income distribution in society. The third chapter (second study) empirically validates the theoretical results obtained in Chapter 2 (first study). It employs the descriptive output and econometric (external as is usually said) validation techniques as an indirect identification strategy to examine the link between access to bank loans and income distribution. It uses data from the Ethiopian Central Statistical Agency (CSA) on medium and large scale manufacturing and national personal income distribution data from the Ethiopian Ministry of Finance and Economic Development (MoFED). Its major conclusions are: (i) firms’ access to bank loans is one mechanism through which income distributional issues can be explained, (ii) firms’ financial structures matter, that is, whatsoever the source of funds, if they are used as investments in fixed capital, the functional income distribution improves, and (iii) functional income distribution is strongly associated with personal income distribution. The chapter will contribute to policy and also enrich the limited literature on the finance-inequality relation. The fourth chapter (third study) links functional income distribution to productivity growth. Its main focus is on examining how functional income distribution can influence the evolution of productivity thereby promoting economic growth. It employs Nelson and winter’s (1982) evolutionary economic framework, evolutionary theory of economic change and the subsequent developments in the field of evolutionary economic modeling. These are used jointly with the evolutionary econometric approach which sees economic growth as an open ended process. The major conclusion of the fourth chapter (third study) is lack of strong evidence of evolution (intra-industry selection) to foster productivity growth and re-allocation (structural change). Thus, the three studies not only shed light on the inter-relationships between access to bank loans, income distribution and productivity growth through a deep analysis of the concepts, theories and their usefulness, but also empirically investigate the nature of their causal relationships and estimate their effects. These two aspects will contribute to the growing literature on ACE.
  • No Thumbnail Available
    Item
    Access to Credit and the Impact of Credit constraints on Agricultural Productivity in Ethiopia: Evidence from Selected Zones of Rural Amhara
    (Addis Ababa University, 2015-02) Dessie, Tilahun; Admassie, Assefa( PhD)
    The economy of Ethiopia is characterized by its reliance on subsistence agriculture and the existence of underdeveloped financial institutions, especially in rural areas. In the literature, the role of credit as an instrument to boost productivity and welfare has long been justified. The main goal of this paper is to show the agricultural credit access landscape and investigate the impact of credit constraints on agricultural productivity in Ethiopia by using a household survey data from rural Amhara collected in 2013. After adjustments throughout the data cleaning process, the study relied on a survey of 1082 households which are found with valid information for all the variables considered in study. The study revealed that 66.17 percent of households are credit constrained which shows how the rural credit market landscape in Ethiopia is highly imperfect. By using an endogenous switching regression model, the study tried to show the effect of demographic and other socioeconomic variables on credit constraint status of households and simultaneously the impact of credit constraints on agricultural productivity. Finally, the paper uncovered the existence of a huge productivity loss due to various types of credit constraints. The cumulative impact is estimated to be 17.94 percent, i.e. an additional per hectare income of 1410.17 Ethiopian birr productivity gain if all types of credit constraints happen to be eliminated. This calls for a well-coordinated policy intervention compatible with the dynamics of rural institutions and other location bottlenecks.
  • No Thumbnail Available
    Item
    Access to Finance and Firm Growth: The Case of Ethiopian SMEs
    (A.A.U, 2023-12-04) Asamnew Techan; Dr. Befikadu Degefe
    This study conducts an empirical investigation of the effects of access to finance on the growth of Ethiopian SMEs. In order to achieve this, the study made use of an enterprise-level data set from the World Bank’s Enterprise Surveys. The study specifically uses the World Bank Enterprise Surveys two year panel data set for Ethiopia (i.e. for the year 2011 and 2015). The dataset consists of 1,486 Ethiopian firms of which the largest share (907) is micro and small firms. The study used descriptive and econometric analysis to process the data, obtain the relevant estimation results and fully discuss the purposes under the study. Both subjective and objective measures of access to finance were used for the sake of robustness. The subjective measure of access to finance is obtained from the ranking of access to finance as no obstacle or severe obstacle to business operations. The objective measure of access to finance measures whether firms are credit constrained or not. The study found that firm growth is significantly constrained by access to finance. Firm age is also found to have a negative relationship with firm growth while innovative firms have a better chance of growth than noon-innovative firms. Firm’s access to finance is strongly determined by factors such as firm age, firm size, collateral, firm’s innovative practices, and firm’s export orientation. However, whether these factors constrain access to finance depends on firm size.
  • No Thumbnail Available
    Item
    Access to Finance and its Challenge for Small Business Enterprises Case of Addis Ababa City
    (Addis Ababa University, 2010-06) Zeru, Fetene; Duresa, Degefa (PhD)
    Small-scale enterprises have become an important contributor to Ethiopia’s economy. The sector contributes to the national objective of creating employment opportunities, training entrepreneurs, generating income and providing a source of livelihood for the majority of low- income households in the country, accounting for material amount of GDP (Eshetu and Mammo, 2009). Improving access to finance for small business is an important devilment tool, because it helps these business sectors, in addition to strengthening the forward and backward integration to and from different sectors, to create employment for the unemployed and increases their income and consumption. The purpose of this paper was to bring to light one of the major prerequisites, namely access to finance aspects, of the small scale enterprises which are foundation in accelerating economic growth. The main objective of the paper is to identify the challenges that small businesses in Addis Ababa (selected sub cities) face in accessing finance from financial institution through identifying the dominant means of financing small businesses and factors influence the extent of accessing finance. The study was conducted by taking into account the demand side aspect. The most pressing problem identified, from response of small businesses and from responsible officers interviewed, was accessing fund to finance working capital and in fixed investment. The basic factors aggravated the problem for small business are loan covenants need by financial institution, lack of collateral, level of cost of financing and availability of other financing instruments. In addition; as it was confirmed from the research, luck of credit history with the financial institutions, willingness of banks and suppliers to provide credit and the firm’s specific outlook about sales and profitability have contributed to the problem. Key words: Access to finance, Small business enterprises
  • No Thumbnail Available
    Item
    Accesses in Determining Foreign Direct Investment: Panel Data Analysis of Sub-Saharan Africa Countries
    (A.A.U, 2012-06) Getachew, Melese; Fantu, Guta (Dr)
    More recently, due to the globalization process and the increasing roles of Multinational Corporation in economic development, many empirical literatures have been tryi ng to take into account the effects of not only the classical factors: but also the various institutional issues which affect considerably the For flow in the host countries. So, the objective of this paper is to explore the major accesses to FDl flow to the Sub Saharan Africa countries by focu sing on main institutional factors, and other conventional variables in For flow to the region. For this purpose, we employed two panel model techniques: the fixed effect and dynamic panel model (the system GMM estimator of Arellano and Bover (1995) and Blundell and Bond (1998)) by utili zing the data of 32 SSA countries covering the period 1994-20 I O. Our findings reveal that among the in stitutional quality variables ( regulatory quality), past level of inward FDI, market size, openness, natural resource availability, financial development if supported by regulatory quality are found to be important derivers of FDI flow to the region. Conversely measures in control of corrupt ion, the existing rule of law, macroeconomic condition (i.e. inflation and exchange rate) and infrastructural situation are found to be insignificant for the region's FDI flow. To increase For flow to the region policy makers (economic administers) of the region need to strive to improve and amend their policy regarding their institutions: rule of law, the way to control corruption, develop infrastructures, improve macroeconomic condition and should diversify and develop their economies.
  • No Thumbnail Available
    Item
    Accessing the Practice and Challenge of Stakeholder Management in Ethiopian NGOs: In case of Three Roots International
    (Addis Ababa University, 2023-06) Hilina Theodros; Wubshet Bekalu (PhD)
    Stakeholder management is a critical topic in project management for a successful project. NGOs are project-driven organizations which need stakeholder management for their success. Despite the importance of stakeholder management only few researches on NGOs in Ethiopia regarding their stakeholder management practice. This study therefore intends to access the practice and challenge of one of Ethiopian NGOs, Three Root International. The study employed qualitative case study approach. Stakeholder identification, plan stakeholder engagement, managing stakeholder engagement and monitor stakeholder engagement are the four components evaluated in order to access the practice of stakeholder management in Three Roots International. The study was conducted on 3 employees, 2 volunteers, and 5 beneficiaries of the NGO. The study on the employees is conducted based on the four components and the study on volunteers and beneficiaries is conducted in order to investigate the NGO’s practice in engaging these particular stakeholders in its project’s life cycle. The finding indicates that stakeholders are identified based on their impact on the project and by creating a communication for stakeholder and creating meaningful project vision, project design and make the stakeholders engage in training, participating in each cycle of the project is their planning mechanism. Stakeholders’ engagement is managed by working closely, make stakeholders participate in the project directly, training stakeholders and the communication strategies it uses. Stakeholders’ engagement method that is used by the NGO is positive response of contribution and opening up for stakeholders to participate based on their skill and knowledge, discussion in meeting. The challenge the NGO faces in stakeholder management is previous concept of development anticipated by the stakeholders which is assuming development incurred only by receiving money and resisting change for the new development concept. Based on the findings of this study, it is recommended that the NGO should extend its partnership with other stakeholders to address other community’s issues and should extend its communication strategies for volunteers in order to address beneficiaries demand according to their cultural context
  • No Thumbnail Available
    Item
    Accounting Information Systems and Business Performance: The Case of Commercial Bank of Ethiopia
    (A.A.U, 2021-01) Kebede, Abraham; Berhanu, Habtamu
    The purpose of the study was to identify the relationship between information system success and business performance as well the extent of moderating effect of Accounting Information System effectiveness on the above relationship of Commercial Bank of Ethiopia (CBE). The researcher used both primary and secondary data and used the explanatory research design. The researcher used a random sampling technique and an online questionnaire through the google platform to the CBE branch staff and customers and used Pearson correlation, multiple regression, and moderate regression to justify the objective of the study. The primary data are were collected through online based structured questionnaires and based on valid and complete sample responses of 108 employees and 108 customers of CBE selected based on stratified random sampling method. The finding of this study showed that IS success has a positive and significant impact on business performance and AIS effectiveness has a positive and moderate effect in affecting the relationship between IS success and business performance based on Service Profit Chain (SPC) model. Therefore, the researcher recommends companies should integrate information quality, service quality and system quality in designing IS framework design in a holistic approach and take into consideration the effectiveness of AIS as moderating factor to benefit the level of business performance expected from the IS model.