Economics
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Item The Role of Entrepreneurial Orientation in Driving Environmental, Economic, and Social Sustainability: The case of Sebeta and surroundings smallholder farmers(A.A.U, 2026-02-03) Belay Teka; Ethiopia LegesseThe purpose of this study was to examine the role of entrepreneurial orientation in ensuring the three sustainability dimensions namely, economic, environmental, and social. Moreover, the study is made among smallholder farmers in Sebeta region and its surroundings. Specifically, the research investigated the mediating effects of strategic innovation and stakeholder integration, as well as the moderating roles of market uncertainty and strategic innovation– stakeholder integration interactions. A structured questionnaire was administered to 384 smallholder farmers, yielding a 72.4% response rate. Data were analyzed using SPSS version 25 and Hayes’ PROCESS macro (Models 1 and 4) to test moderation and mediation effects respectively. The findings revealed that entrepreneurial orientation significantly improves economic sustainability, partially mediated by strategic innovation, indicating that innovation serves as a key mechanism for enhancing economic performance. Market uncertainty was found to positively moderate the relationship between EO and environmental sustainability, suggesting that EO becomes more effective in promoting environmentally sustainable practices under uncertain market conditions. Furthermore, stakeholder integration partially mediated the relationship between EO and social sustainability, demonstrating that active stakeholder engagement enhances social outcomes. Based on these findings, the study concludes that strengthening entrepreneurial capabilities, innovation adoption, stakeholder collaboration, and farmers’ capacity to navigate market uncertainty can significantly improve the long-term sustainability of smallholder farming systems. The study contributes to the literature by providing empirical evidence on the mechanisms through which entrepreneurial orientation drives multidimensional sustainability in agriculture, while recommending that future research incorporate additional mediating and moderating variables to further enrich understanding. Keywords: Entrepreneurial Orientation, Strategic innovation, Stakeholder integration, Market uncertainty, sustainability, Smallholder farmers.Item THE IMPACT OF INFLATION ON STOCK PRICE IN SELECTED AFRICAN COUNTRY(A.A.U, 2025-06-03) Tigist Kassie; Alemu LambamoThe study investigating the impact of inflation on stock price in selected eight African countries, Egypt, Morocco, Tanzania, Kenya, Ghana, South Africa, and Botswana span from 2008 to 2023. The study employed secondary data. The study used panel Auto-regressive Distributed Lag (ARDL) model estimated via pooled mean group (PMG) approach. The study examined the short-run and long-run effect of inflation on stock price as well as other macroeconomic variable as a control variable. Results from the study indicate that inflation has a positive and significance long-run impact on stock price. This also suggests that equity in these markets can serve as a hedge against inflation which supports the fisher effect hypothesis. In contrast shortrun effect of inflation varies significantly across the country. Among those, South Africa, Egypt, Nigeria and Ghana, has positive and significant effect on stock price. This indicates the presence of country specific effect. Broad money supply shows a significant and positive impact on stock price in long-run, in contrast gross domestic product growth rate exhibits a significant and negative impact on stock price. However, there is no significant relationship between deposit interest rate and stock price. The findings also recommend to policy maker emphasizes the need of macroeconomic stability, country specific investment strategy, and for investor may use the information invest in safe investment environment. Key words: Inflation, Stock price, Panel ARDL, PMG estimation, Inflation hedge, Africa stock marketItem Modelling Municipal Solid Waste GHG Emissions in Addis Ababa: a System Dynamics Approach(A.A.U, 2025-06-17) Robera Bayissa; Zerayehu Sime (PhD)This study employed a system dynamics model to evaluate greenhouse gas (GHG) emissions of municipal solid waste (MSW) management in Addis Ababa from 2022 to 2034 through the simulation of five treatment scenarios: Business as Usual (BAU), Organic Waste Diversion and Improved Sorting, Energy Recovery Maximization, Recycling-Driven Circular Economy, and a Combined Low Emission strategy. According to the BAU scenario led to faster saturation of the landfill and higher methane emissions, while Organic Diversion and Circular Economy scenarios achieved considerable emission reduction and jobs from recycling and composting. Energy Recovery Optimization scenario optimized incineration, reducing landfill usage but the CO₂ hasn't declined as in the other policy scenarios despite the net cost increasing significantly. The Integrated Low Emission scenario with over 70% efficiency in separation, 25% recycling, 30% composting, and 40% use of waste-to-energy created the lowest overall GHG emissions, less than half of BAU by 2035, and produced the most sustainable outcome in all three aspects: environmental, economic, and social. These findings underlie the importance of integrated, low-emission waste strategies to facilitate a contribution from Addis Ababa to achieving Ethiopia's Climate Resilient Green Economy (CRGE) goals.Item The Effect of Foreign Aid on Economic Growth: the Case of Sub-Saharan African Countries(A.A.U, 2025-06-11) Tofik Mume; Atnafu G. Meskel (PhD)This thesis assesses the impact of foreign aid on Sab-Saharan African Economic growth. Its objective is to explain the trend of foreign Aid and assess the effect of foreign Aid on Sub - Saharan African economic growth (GDPPC growth) as measured by GGDP per capital. In order to fulfill its objective, the studies used panel data from 33 SSA countries for 24 years (2000-2024) and using Generalized method of moment(GMM) regression model, this study assess the impact of foreign assistant on economic growth in Sub-Saharan African (SSA). The main variables in this study is GGDP per capita (constant 2021$US) as dependent variable, Labor force participation rate (L), Capital Formation (K), Government Consumption Expenditure (GC), Foreign direct investment (FDI), Trade (T) and Foreign aid (Aid) as Explanatory variable (Independent Variable). The study finds indicate that foreign aid has positive and significant effect on SSA economic growth. The study result also suggests that there is diminishing return of aid as the volume of aid increase in the same countries under the study. As the study finds indicate the effect of foreign aid on Sub-Saharan African Economic growth is very low. Therefore, the countries shall reduce aid dependency and focus on their home economy. Additionally, large set of variable for all Sub-Saharan African countries and including the conditions on which foreign aid may depend for effectiveness like government effectiveness, economic policy and institutional quality is important for the future researchers and policy makers.Item Factors Affecting Labor Turnover Intention in the Garment Industry in Nasa Garment P.L.C (Hawassa Industrial Park)(A.A.U, 2024-06-16) Melat Ayele; Yared Asrat (PhD)This research study, titled ‘Factors Affecting Labor Turnover Intention in the Garment Industry,’ investigates turnover intentions and identifies the primary causes of employee turnover intention. The study focuses on Ethiopia’s industrial parks, with Nasa Garment serving as the sample organization. An empirical study was conducted at Nasa Garment P.L.C, a local apparel company situated in Hawassa Industrial Park. Quantitative data were collected through questionnaires, employing the random sampling method to select sample and used Solvin’s formula to determine sample size. Data were analyzed using descriptive and inferential statistics, correlation analysis to identify and relationship between the variables; regression analysis to predict the change in the dependent variable when the independent variables change. The results from the analysis of a dataset derived from questionnaires on existence of turnover intention and the factors of the turnover intention, completed by 197 NASA Garment Plc existing employees. The research revealed a consistent high employee turnover rate over the years within the company, resulting in significant costs, particularly related to training new employees. The study’s key findings indicate that there is turnover intention in the current employees of Nasa Garment and the primary factor driving turnover intention is ‘Salary and Benefit,’ followed by ‘Other Employment Opportunity.’ Additionally, there exists a significant negative correlation between ‘Turnover Intention’ and ‘Other Employment Opportunity,’ as well as a negative correlation between ‘Turnover Intention’ and the ‘Salary and Benefit’ factor. . Keywords: Employee, turnover intention, factors, Industry Park.Item Technical Efficiency of Teff Production in Ethiopia(A.A.U, 2025-02-28) Bersabet Shemelis; Hailu Elias (PhD)Ethiopia is the largest producer of Teff, a staple grain with significant cultural and economic importance. This study aims to investigate the technical efficiency score of Teff analyzing factors influencing teff yield using stochastic frontier analysis on “Resilience to climate change” data collected in 2023. The study has found labour input and land size negatively impact efficiency, while livestock in tropical units positively influence it. Fertilizer use, crop rotation, and extension service also contribute to reducing inefficiency while literacy and irrigation use show no significant effect. With a technical efficiency score of 0.787, the study highlights the potential for improving resource utilization. Recommendations for enhancing efficiency include adopting better labour and land management practices, promoting integrated farming systems, increasing fertilizer accessibility and proper usage, and strengthening extension services. Further research is suggested to address barriers and evaluate the long-term impacts of these interventions.Item Nexus Between Credit Accessibility and Growth of Small and Medium Enterprises: The Case of Addis Ababa City Administration(AAU, 2025-12-05) Truwork Tsegaye; Guta Legesse (PhD)This study examines the determinants of small and medium enterprise (SME) performance in Addis Ababa, Ethiopia, recognizing the critical role of SMEs in economic development and the persistent challenge of accessing finance in developing nations. Utilizing firm-level data from the World Bank Enterprise Survey (2015), the research employs a mixed-methods approach, integrating descriptive statistics and correlation analysis, and a logistic regression model and ordinary least square model for econometric analysis. The analysis considers firm characteristics such as size, age, loan access, obstacles to finance, and firm- level performance measures. Results reveal that firm size (a6a) is a key driver of sales growth, with larger firms more likely to report positive performance. market orientation (e1) and rotation order (m1d) also influenced performance (sales growth and employment growth). The availability of fixed assets did not significantly predict performance, with the model explaining 40.5% of the variance in performance. The study concludes that easing financial constraints, expanding SME loan schemes, and strengthening targeted policies for micro and small enterprises are critical for performance improvement. Policy recommendations include enhancing financial infrastructure and implementing size- differentiated support programsItem Trade Liberalization and Economic Growth in Eastern Africa(AAU, 2025-08-04) Bayeetti Alemayehu; Habtamu Adane (PhD)This study investigates the impact of trade regulations—specifically tariffs, foreign exchange rates, WTO membership, foreign direct investment (FDI), net exports, and terms of trade—on economic growth in eleven East African countries over the period 2000 to 2023. Using panel data and robust econometric techniques, including the Driscoll-Kraay standard error regression, the study accounts for issues of heteroskedasticity, autocorrelation and cross-sectional dependence common in macro- panel data. Descriptive statistics and trend analysis were first employed to explore the economic performance of the region, followed by fixed effects and ultimately Driscoll-Kraay estimations to determine the relationships between trade-related variables and real GDP. The findings reveal that net exports and terms of trade have a strong, positive, and statistically significant relationship with economic growth. In contrast, FDI and tariff rates are negatively associated with real GDP, although both are statistically significant. Surprisingly, WTO membership was also found to have a significant but negative effect on GDP, suggesting that trade liberalization alone may not be sufficient to drive growth in the absence of domestic institutional and structural reforms. The foreign exchange rate had a negative but statistically insignificant effect on growth. Based on these findings, the study recommends that East African countries pursue more strategic trade and investment policies, enhance institutional capacity for engaging in global trade frameworks, and focus on improving export competitiveness and regional trade integration. These measures are essential for translating trade openness into sustained economic development in the regionItem The Determinants of Ethiopia’s Balance of Payment: An Analysis of Disequilibria and Policy Implications(AAU, 2025-07-30) Marartu Alemayehu; Jonse Bane (PhD.)Ethiopia has been suffering chronic balance of payments (BOP) disequilibrium for decades, yet few studies have looked at the combined role of structural issues, policy shocks, and governance concerns, above all, political corruption, to explain this imbalance comprehensively. The present study fills the gap by analyzing the principal determinants of Ethiopia's BOP imbalance between 1974 and 2023 with a special focus on economic, structural, and policy-related variables across three political regimes. Using an Autoregressive Distributed Lag (ARDL) specification, the results from the analysis relied on data obtained from the National Bank of Ethiopia, World Bank, Global Economy, and government and research outlets. The long-run findings show that the exchange rate is statistically significant by itself, and hence currency depreciation is helpful in increasing the BOP in the long run. They have powerful impacts in the short term. FDI, external debt, inflation, and exchange rate as well as past BOP levels have powerful short-run impacts. Policy actions and anti-corruption measures also have negative short-run impacts accounting for transitional adjustment costs. The robustness of the model is verified by diagnostic tests. The results stress the pivotal role of exchange rate management to bring about long-run external balance and imply that exchange rate flexibility can be used to strengthen export competitiveness. Added to this, careful management of FDI and external debt can remove short-run external imbalances. Policy and governance reforms are mandated nonetheless, but these need to be sequenced properly in order not to trigger short-run volatility yet achieve long-run BOP sustainabilityItem Determinants of Rural Households’ Access to Credit and Its Impact on Households’ Food Security and Crop Productivity: Evidence from Ethiopia(A.A.U, 2025-06-01) Amanuel Nigus; Gebeyehu ManieThis study examined the determinants of rural households’ access to credit and its impact on household’s food security and crop productivity in rural Ethiopia. To this end it employed a secondary data of 1524 rural households participated on the 2021/22 socio-economic survey accessed from the World Bank data base. Households’ food security status was measured by dietary diversity score and daily calorie consumption per adult equivalence. As to econometric methodology, binomial logistic regression model was used for identifying factors affecting households’ credit access, while endogenous switching regression model was employed for examining the impact of access to credit on food security and crop productivity (yield) outcomes. The study revealed that access to credit is very low in rural Ethiopia in which only 7.2% of sample households have managed to get credit access. Moreover, the result of binomial logistic regression model indicated that age of household head, monthly income, livestock size, distance from nearest market center and access to extension services are key determinants of rural households access to credit in the study area. Results of average treatment effect indicate that access to credit significantly boosts teff and maize productivity in the study area. However, despite significantly enhancing improved seed and chemical fertilizer adoption, it is not found to have impact on food security. It emphasizes the need for complementary interventions to address broader household welfare, ensuring that agricultural gains translate into sustainable food security outcomes for rural households of Ethiopia. Key Words: Credit Access, Endogenous Switching regression, Food Security, EthiopiaItem Digital Marketing Practice and its Effect on Business Performance: An Empirical Analysis of K2n Architecture and Engineering Consultancy Plc(AAU, 2025-05-01) Kidist Tadesse; Asres A.The purpose of this study is to investigate the digital marketing practice and its effect on business performance: an empirical analysis of K2N architecture and engineering consultancy plc: The researcher uses descriptive and quantitative analysis methods. As well as, the data collected by using a well-structured questionnaire regarding the digital marketing practice and business performance by applying it to random sample of K2N members in Addis Ababa, which contained of four sub-dimensions of digital marketing (social media marketing, mobile phone marketing, website marketing and email marketing) and dependent variable business performance having 43 questions based on the systematic variation of the study variables. Although, the selected sample size consists 133 members who work in K2N as a manager, team leader, supervisor, Architect, Engineers. Finance, IT person. While the results showed that the total of the digital marketing in all of its forms effect on the business performance of the Architecture and Engineering consultancy company (as the main dimension) was perceived by the study sample to be present with a mean of 4.51 (SD=0.664) at a moderate degree. Results: The most important result was that the performance K2N architecture and engineering consultancy plc is showing a great positive result, which means that the effect of digital marketing in K2N' performance was even very good or excellent. Conclusion: The most important conclusion it’s confirmed that digital marketing in all its forms has positive effect and significant relationship with business performance of K2N. Keywords: Digital Marketing, Business Performance, Mobile Phone marketing, website marketing, social media marketing and email marketing.Item Determinants of Export Earnings in Ethiopia: a Time Series Analysis(A.A.U, 2025-06-16) Shalemu Asnake; Habtamu Adane (PhD)This study examines the determinants of Ethiopia’s export earnings using annual time series data from the National Bank of Ethiopia (NBE) spanning 1991–2024, motivated by the country’s persistent underperformance in export earnings despite its economic potential. The research addresses the critical question: What factors explain Ethiopia’s export earnings dynamics, and how can policymakers enhance export performance to address foreign exchange shortages and drive structural transformation. The primary objective is to identify long-run and short-run determinants of export earnings to inform evidence-based policy interventions, employing Johansen cointegration and Vector Error Correction Models (VECM) to analyze relationships between export earnings and five key variables: real gross domestic product, terms of trade (ToT), trade openness, real effective exchange rate (REER), and infrastructure (proxied by real capital expenditure). Results indicate that in the long run, real gross domestic product, terms of trade, trade openness, and infrastructure significantly boost export earnings, while real effective exchange rate exerts a negative effect, reflecting competitiveness challenges from currency overvaluation. Short-run estimates align with expectations, showing positive impacts from all variables, including real effective exchange rate (consistent with the J-curve effect). Thus high and sustainable economic growth, improvements in infrastructural facilities, and maintaining a stable exchange rate policy as well as working to reduce trade constraint mechanism should be given due emphasis so as to improve Ethiopia's export earnings.Item The Effect of Exchange Rate Devaluation on Domestic Inflation in Ethiopia(A.A.U, 2025-09-19) Yimer Ayalew; Helen Berga (PHD)Exchange rate devaluation has been used as a policy tool by Ethiopia, a small open economy, particularly during this period. It is unclear if this policy has had a beneficial or negative impact on inflation in particular and the economy as a whole. The focus of this study was to assess the effects of devaluation on inflation from 2010Q1 to 2024Q4 using ARDL model. The finding of this study shows that REER is statistically insignificant effects on CPI; devaluation leads to increase the inflation of a country. Therefore, the researcher for this finding recommended NBE and government of Ethiopia to communicate transparently with the public regarding the reasons for devaluation and its expected impact on inflation and promote policies that encourage domestic production of goods and services to reduce reliance on imports. Keywords: Devaluation, Consumer Price Index Real Effective Exchange Rate, Money supplyItem Essays on Agricultural Productivity and Climate Resilience in Ethiopia: Insights into Conservation Practices, Public Works, and Land Cover Change(A.A.U, 2025-07-16) Gemeda Olani; Gunnar Köhlin (Assoc. Prof.)This dissertation explores the interconnected dynamics of agricultural productivity, climate resilience, and sustainable land management in rural Ethiopia. It evaluates the effects of targeted conservation information on productivity, examines the role of public works in resource conservation and labor engagement, and analyzes the impact of land cover changes on agricultural output. The first essay assesses the influence of plot-specific conservation practices on productivity, highlighting the role of tailored information in promoting recommended practices and enhancing productivity. Through multi-year (2015-2021) randomized controlled trials, the study demonstrates that site-specific conservation recommendations significantly improve the adoption of conservation practices and increase maize land productivity across diverse agroecological contexts. The findings further suggest that such interventions lower costs by saving labor and improving soil fertility, thereby increasing productivity. These findings highlight the potential of targeted conservation strategies to improve agricultural productivity and promote long-term sustainability across diverse agroecological regions. The second essay examines the impact of public works programs on soil and water conservation and their effect on labor engagement in rural Ethiopia. By utilizing unbalanced panel data from the Ethiopian socioeconomic survey across three periods (2011/12, 2013/14, and 2015/16), this study illustrates that public works programs enhance soil and water conservation, reallocate labor to agricultural production, and reduce labor participation in non-agricultural activities. These programs support immediate livelihoods and long-term sustainability, particularly as adaptive strategies in drought-prone areas, by strengthening conservation efforts, reshaping household labor allocation, and enhancing food security. The third essay explores the impact of weather shocks on agricultural productivity in rural Ethiopia, focusing on the role of land cover dynamics. This study employs balanced panel data from the 2011/12, 2013/14, and 2015/16 waves of the Ethiopian Socioeconomic Survey, combined with satellite-based vegetation indices, drought severity, and temperature data. Using a multiway fixed-effects estimator, the analysis shows that weather shocks significantly reduce agricultural productivity, while improved land cover mitigates these effects and increases productivity. The study finds that enhanced land cover change better mitigates climatic stress in tropical-cool zones and high-productivity households. The paper emphasizes the critical importance of sustainable land management in strengthening resilience to climate variability in vulnerable regions. Collectively, these essays advance the understanding of sustainable practices and resilience strategies, offering valuable insights for policies that promote livelihoods, food security, sustainability, and climate resilience in rural Ethiopia. This dissertation synthesizes key findings and offers evidence-based recommendations to enhance agricultural productivity and climate resilience in Ethiopia, with broader applicability to regions sharing similar agroecological and farming contexts. Keywords: Agricultural productivity, Climate resilience, conservation, information, Public works, Land cover changeItem Essays on Climate Change, Institutional Quality, Economic Growth, and Poverty Vulnerability: Macro–Micro Perspectives from Sub-Saharan Africa(A.A.U, 2025-06-22) Desalegn Dawit; Paul Nystedt (Professor)Abstract This dissertation comprises empirical analyses of climate change’s effects on aggregate and sectoral economic growth in Sub-Saharan Africa, including an examination of how institutional quality may influence these effects. It also investigates how climate variability affects poverty vulnerability in Ethiopia. As part of this dissertation, the first paper uses panel data from 43 Sub-Saharan African countries (1970–2019) and employs fixed effects and seemingly unrelated regression models to examine climate change’s effects on aggregate and sectoral economic growth, finding that rising temperatures and reduced precipitation disproportionately affect agriculture, with vulnerable countries facing the greatest economic losses, while industry, manufacturing, and services exhibit resilience. Expanding upon this, the second paper employs System GMM and a long-run multiplier approach with panel data from 43 Sub-Saharan African countries (1996–2019) to explore how institutional quality conditions climate change’s effects on economic growth, revealing that stronger institutions enhance resilience but struggle to offset rising temperatures’ long-term impacts, while corruption and political instability worsen environmental degradation and economic challenges, emphasizing the need for integrated institutional reforms and climate adaptation strategies. Extending this analysis, the third paper examines climate variability’s impacts on poverty vulnerability in Ethiopia, using three-round micro-panel data from the Ethiopian Socioeconomic Survey (3,313 households) and climate data from the Ethiopian Meteorological Agency (2010–2016) with a two-level random coefficient model and fixed effects, finding that climate variability has a greater impact on poverty vulnerability than socioeconomic factors, particularly among rural households with larger families and higher dependency ratios. Thus, this dissertation recommends a multi-pronged policy framework for SSA: (1) boost agricultural resilience through climate-smart practices (e.g., drought-resistant crops, irrigation systems) to mitigate sectoral losses; (2) strengthen institutional quality via anti-corruption measures and governance reforms to curb environmental degradation and enhance long-term economic stability; and (3) implement targeted interventions in Ethiopia and similar SSA contexts, including climate-resilient agriculture, sustainable farming techniques (e.g., agroforestry), livelihood diversification (e.g., off-farm income), and expanded social protection (e.g., cash transfers, insurance schemes) to reduce poverty vulnerability and build household resilience. Key Words: Climate Change, Economic Growth, Institutional Quality, Poverty VulnerabilityItem The Effect of Inflation on the Performance of Private Commercial Banks in Ethiopia: the Case of 12 Selected Banks(A.A.U, 2025-02-17) Mastewal Aderaw; Girma Estiphanos (PhDInflation one of the prevalent issue in Ethiopia, have been growing nearly 25% on average for the last 5 years, a relatively higher rate & affects various sectors of the economy including the banking sector. CB, whose primary product is financial service, is highly affected by this inflation dynamics. A higher inflation rate leads to an economic disruption & this affect both the real & financial sectors. Slowdown in the economy, downsize the amount of money that flow to CBs in the form of deposit & vice versa. This study examined ‘The effect of inflation on the performance of private CBs in Ethiopia: a case of 12 selected banks; particularly highlighting its influence on Return on Equity (ROE) & Efficiency Ratio (ER); using reliable data for the period covering 2009 to 2024; analyzed using a quantitative approach, mainly panel data analysis techniques: the fixed effect model and its respective error correction version i.e. the Driscoll and Kraay fixed effect model with robust standard errors. The results are inflation positively & significantly affects return on equity (ROE) & negatively & significantly affects efficiency ratio (ER) of examined PCBs. The findings of this thesis suggest that inflation affects CBs performance by boosting return on equity (ROE) through higher lending rates while reducing efficiency due to rising operational costs. Ethiopian CBs, like those in other emerging economies, must implement dynamic interest rate strategies, cost-saving measures, digital transformation & revenue diversification to navigate inflationary conditions successfully. NBE should also play crucial role in inflation stabilization & ensuring a sustainable banking environment.Item Determinants of Household Food Security in Addis Ababa City(A.A.U, 2025-02-11) Bewket Belayneh; Teferi Daba (PhD)The purpose of this study was to examine household food security and its determinants in Addis Ababa by using household socio economic survey data collected by ESS and logistic regression method. The logistic regression results revealed that the sex and education level of household head, adult male equivalent, share of food consumption expenditure and household income are significant factors of food security. Accordingly male-headed households are significantly more likely to achieve kilocalorie sufficiency, with an odds ratio of 1.79 (p = 0.010). The results revealed that a thousand unit increases in income raises the likelihood of being food secured by approximately 2.97 times, holding other variables constant. Therefore income is found to be a strong positive association with calorie sufficiency. Another strong factor is education of household. A change in in education level give raise to the odds of kilocalorie sufficiency by 27% (p = 0.016). on the other hand, family composition has negative association with food security such that each additional adult equivalent decreases the odds of sufficiency by 39% (p < 0.001) implying the chance of large adult equivalent families for greater strain on financial and food resources. In this study a percentage increase in the share of expenditure on food raises the odds by 3% (p < 0.001), implying the more food budget the more likely to achieve dietary adequacy and the lower the income the more vulnerable the households are. Each unit increase in log of household income raises the odds by 8% (p = 0.011) revealing better financial capacity in ensuring access to adequate and nutritious food. Therefore, a policy option of supporting female-headed households, promotion of educational and enabling access to income-generating initiatives could help to improve food security. Key Words: food, security, insecurity, vulnerability, household, determinant, variable, logistic regression.Item Assessing the Effects of Overseas Banks Entry on the Performance of Domestic Banks and the Economy in Selected Sub-Saharan African Countries: A Lesson for Ethiopia(AAU, 2024-07-01) Melaku Habte Woldehitsan; Tadele Ferede Agaje (PhD)Item Assessing the Effects of Overseas Banks Entry on the Performance of Domestic Banks and the Economy in Selected Sub-Saharan African Countries: a Lesson for Ethiopia(A.A.U, 2024-07-18) Melaku Habte; Tadele Ferede (PhD)The main purpose of this study is to assess the effects of overseas banks’ entry on domestic bank performance and the economy in selected Sub-Saharan African countries. The time under scrutiny is from 2005 to 2020. To this end, both primary and secondary data were employed. A two-step system of generalized method of moments (GMM) was adopted to identify the effects of overseas banks’ entry on domestic bank performance and the economy. Overseas bank assets share is used as a proxy for overseas banks’ entry. Accordingly, domestic bank performance is positively determined by overseas banks’ entry, while economic performance (nominal gross domestic product (GDP) per capita) is negatively determined by overseas banks’ entry. The study finding reveals that there exists no significant difference between globalized Sub-Saharan Africa (SSA) countries and Ethiopia as far as the domestic bank performance is concerned. The finding also indicates that overseas banks’ entry will bring enormous opportunities for domestic banks such as capital, technology, more efficient processes, new service channels, systems, and expertise. In the case associated with overseas bank entry, the study identified challenges that include loss of potential customers, unfair competition, transmitting external shocks, and talent drains. The implications of the study include the government and central bank’s need to formulate an appropriate strategic response to minimize the destructive outcomes of overseas bank entry on the performance of domestic banks and the economy. Keywords: - Overseas banks entry, domestic bank performance, economic performance, and generalized method of moments (GMM)Item The Impact of Corporate Governance on Bank Performance: Evidence From Ethiopian Banks' Board Structure and Financial Ratios(AAU, 2025-04-16) Temesgen Kibrekulu Alem; Sisay Regassa (PhD)This study aims to investigate the influence of corporate governance on bank performance in Ethiopia, focusing on how board characteristics (such as size and gender diversity) and regulatory financial ratios impact banks from 2010 to 2023. The analysis is based on data gathered from 10 licensed commercial banks operating in the country. The effect of corporate governance methods on financial performance of banks, as measured by return on equity and Return on asset, was assessed using a quantitative research methodology. Panel data regression is adopted for estimation of main results. The notable findings show that board gender composition and liquidity ratio has a significant and positive relationship with bank performance. Furthermore, the results show that capital adequacy ratio have a significant and negative association with bank performance. Furthermore, the research revealed that the choice of performance metrics significantly impacts corporate governance analyses. The study observed varying outcomes depending on whether Return on Assets (ROA) or Return on Equity (ROE) was used to assess firm performance