Development Economics

Permanent URI for this collection

http://etd.aau.edu.et/handle/12345678/173

Browse

Now showing 1 - 20 of 28

The Effect of Generation Inclusive HR practice on Employee Commitment & Turnover intention: the Case of Dashen Bank and Bank of Abyssinia
(A.A.U, 2026-01-01) Natnael Girma; sor: TilahunTeklu
This research investigates the effect of generation inclusive Human Resource practices on employee commitment and turnover intention in Dashen Bank and Bank of Abyssinia. As workforce demography is shifting to more diverse one, the conventional general HR management approaches will not address the unique needs and expectations of diverse groups (Boehm et al., 2021, p. 1). This study adopted an empirical quantitative research approach, based on primary data gathered from 208 respondents through administered questionnaire. A number of hypothesized relationships were developed and tested using T-test, ANOVA, Regression, and Mediation analyses with SPSS, version 22. The research findings indicate that organizations that implement generation inclusive HR practice tend to have employees with high commitment and lower turnover intention. The study also showed that employee commitment was found to mediate the relationship between generation inclusive HR practice and turnover intention. Furthermore, the study also revealed statistically significant differences in mean employee commitment scores, at a 1% level of significance, between generation Z and millennial generation employees. Findings from this research study makes important contribution to the theoretical understanding of generation inclusive HR practices and provide empirically validated practical recommendations for HR practitioners on how to foster employee commitment and retention through implementing generational inclusive human resource practices. Moreover, this study is also expected to fill knowledge gap specifically with in Dashen Bank, and Bank of Abyssinia. Keywords: generation inclusive HR practice, employee commitment, turnover intention
Essays on Firm Behavior and Performance in Ethiopian Manufacturing: Labor Demand, Capital Accumulation, and International Linkages
(A.A.U, 2025-09-22) Eyayu Tesfaye; Måns Söderbom
First and foremost, I am deeply grateful to the Almighty God for granting me the strength, health, and perseverance to undertake and complete this PhD journey. I am sincerely indebted to my principal advisor, Prof. Måns Söderbom, for his invaluable guidance, constructive feedback, and continuous encouragement throughout every stage of this research. His scholarly rigor and intellectual generosity have been a constant source of inspiration. I also extend my heartfelt thanks to my co-advisor, Dr. Atnafu Gebremeskel, for his insightful comments, support, and contributions that greatly enriched the quality of this dissertation. I am grateful to the Department of Economics at Addis Ababa University, the Environment for Development (EfD) initiative, and the University of Gothenburg for providing a stimulating academic environment, access to resources, and institutional support. I also thank the Swedish International Development Agency (SIDA) for the generous financial support that made this research possible. My appreciation extends to the staff of the Ethiopian Statistical Services (ESS), Dr. Tadele Ferede, and Dr. Tsegay Gebrekidan for facilitating access to the firm-level datasets used in this study. I would also like to thank International Growth Center (IGC) for the PhD fellowship opportunity. I am grateful to Adrian Poignant, Postdoc researcher at University of Gothenburg for his constructive comments. Special thanks to my fellow PhD colleagues, friends, and faculty members for their encouragement and moral support. Finally, I dedicate my deepest gratitude to my family, especially my wife, Dr. Asresie Tesfaw, and my children, Eyoas and Zemichael, for their unconditional love, patience, and unwavering belief in me. Your sacrifices and support sustained me through the most challenging times. To all who contributed to this work, directly or indirectly, I offer my sincere thanks.
The Nexus between Banks Soundness and Performance: Evidence from Selected Commercial Banks in Ethiopia
(AAU, 2025-06-02) Naji Kasim; Kefyalew Endale
The stability and performance of commercial banks are vital for Ethiopia’s economic development, particularly in a volatile financial landscape. This study explores the relationship between bank soundness and financial performance within Ethiopia’s commercial banking sector, analyzing 16 banks from 2015 to 2024. Using the CAMEL framework Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity; it evaluates their impact on key profitability metrics: Return on Assets, Return on Equity, and Net Interest Margin. The analysis incorporates institutional factors such as bank age, ownership structure, and bank size, alongside macroeconomic variables like real GDP growth, to ensure a comprehensive assessment. A quantitative panel data approach with a Random Effects model is employed, addressing econometric challenges through diagnostic tests to ensure robustness. The findings highlight a significant relationship between soundness indicators and financial performance metrics, revealing that operational efficiency and scale are critical drivers of profitability. Larger banks show stronger interest margins, underscoring the benefits of scale in Ethiopia’s banking landscape. While Capital Adequacy exhibits a generally positive but inconsistent influence on performance, liquidity supports interest income generation. Macroeconomic factors and ownership structure show limited impact, emphasizing the role of internal factors in navigating Ethiopia’s economic environment. These insights provide valuable guidance for policymakers and bank management. Keywords: Bank Soundness, CAMEL Framework, Random Effects Model, Ethiopian Commercial
Transmission Mechanism of Trade Liberalization Policy on Economic Growth in Ethiopia: Svar Approach
(AAU, 2025-06-01) Shiferaw Gonfa; Girma Estiphanos
This study aimed to investigate the transmission mechanism of trade liberalization policy on economic growth in Ethiopia by using Structural Vector Autoregression (SVAR) approach with annual data from 1991 to 2024. The study identifies both direct and indirect channels through which trade liberalization policy effect real GDP via foreign direct investment (FDI), inflation, and exports. The results from impulse response function (IRF), structural coefficient matrices, and forecast error variance decomposition (FEVD) provide robust empirical understandings. The finding of the study reveal strong direct effect with tariff rate shocks explaining approximately 19.1% of real GDP. Among indirect channels, tariff rate induced increases in FDI accounts for 0.85% of real GDP growth variance. In inflation channel, declines following tariff reductions contribute 3.5% to real GDP growth. The export channel remains weak, contributing less than 2% to growth, limited by structural constraints in Ethiopian trade sector. These results underscore that trade liberalization affects economic growth both in short and long run, immediate effects through increased FDI inflows and reduced inflation and over the long run evidenced by IRF and FEVD results that shows positive and sustained increase in real GDP growth. Keywords: Trade Liberalization policy, Economic Growth, SVAR, Ethiopia, Transmission Channels, Tariff Rate, FDI, Inflation, Exports
Factors affecting customer retention in the Ethiopian Banking Sector (Study on Commercial Bank of Ethiopia customers in Addis Ababa)
(A.A.U, 2025-12-01) Aregaw Tadele; Abera Legesse
This study looked at how customer experience and quality service affect customer retention in the Ethiopian banking sector. It focused on the mediating roles of customer satisfaction, trust, customer loyalty, and corporate image. The study aimed to address ongoing challenges in customer retention that banks face, even with service improvements and growing competition. A quantitative, explanatory research design was used with a cross-sectional survey approach. Researchers collected data from 389 bank customers through structured questionnaires, using simple random sampling. They analyzed the data with descriptive statistics, correlation analysis, and multiple regression techniques. They performed mediation analysis following the Baron and Kenny method, along with Sobel tests to check the significance of indirect effects. The findings revealed that customer experience and quality service has a significant and positive effect on customer retention. Furthermore, customer satisfaction, trust, customer loyalty, and corporate image were found to significantly mediate the relationship between customer experience and customer retention, indicating both partial and full mediation effects across the proposed pathways. These results highlight the importance of managing not only service delivery but also relational and perceptual factors to enhance long-term customer relationships. The study adds to the existing literature by expanding customer experience and relationship marketing theories through a detailed mediation framework in the Ethiopian banking context. It offers practical insights for bank managers and policymakers, highlighting the need for overall customer experience strategies and quality service to boost customer retention and maintain a competitive edge. The study also suggests future research directions, especially in using longitudinal designs and comparing different sectors. Keywords: Customer Experience, Quality service, Customer Retention, Customer Satisfaction, Trust, Customer Loyalty, Corporate Image, Ethiopian Banking Sector
The Effect of Talent Management Practices on Organizational Performance: In the case of Commercial Bank of Ethiopia
(A.A.U, 2026-01-01) Eleni Ayalneh; Asres Abitie
Today the concept talent management has attracted most business companies around the world because human capital is critical element of competitive advantage. Talent management is a science used to improve business value and achieve organizational performance by implementing talent management practices this helps organizations to achieve their goals. The purpose of this study was to examine the effect of talent management practices on organizational performance in Commercial Bank of Ethiopia. In this study an explanatory and descriptive research design and qualitative and quantitative research approaches were used to meet the specific objective of the study and to answer research questions. The population of this study were employees of Commercial Bank of Ethiopia head office. Primary data gather from 384 responses obtained through questionnaires. The data was analyzed by using descriptive and inferential tools with the help of statistical package for social science (SPSS) Version 27. The result of descriptive analysis describe that the mean score for overall talent management practice components- talent attraction, talent development and talent retention is above the average. The correlation analysis result showed that there is a major positive strong relationship exists between talent management practices and organizational performance. In addition to this the regression analysis evidenced that talent management practice is predictor of organizational performance. The study suggested that an attention should be given by the organization on all components talent management practices to improve organizational performance. Finally, based on the research findings, conclusion, appropriate recommendations and suggestion for future research direction were presents in the study. Key Words-Talent Management, Talent Attraction, Talent Development, Talent Retention and Organizational performance.
Essays on Development and Behavioral Economics: Examining the Interplay Between Shocks, Social Capital, Trust, and Prosocial Attitudes
(A.A.U, 2025-11-03) Abraham Seyoum; Peter Martinsson; Jonse Bane
The literature is unclear whether social capital can insure effectively against shocks. We provide evidence from rural Ethiopia, a setting characterized by prevalent shocks, lack of formal insurance markets, and functioning informal traditional institutions, using four waves of household panel surveys with over 6000 observations. We measure social capital as the social network -based resources available to rural households via local informal institutions, alternatively measured as network size, network diversity, and simple membership in institutions. Fixed effect estimation results show that the buffering role of social capital extends beyond insurance against idiosyncratic shocks, with variation across welfare and social capital measures. Social capital helps protect against multiple and simultaneous shocks, buffering shortfalls in not only total consumption but also food and consumables consumption. Rural households thus benefit from informal insurance in local institutions in the absence of formal insurance markets. Rural insurance policies and efforts to address food insecurity and rural development challenges should consider resources embedded in these institutions. Keywords: Social capital, social network, Local informal institution, informal insurance, shock
Effect of E-Banking Service Quality on Customer Satisfaction: The Case of Nib International Bank S.C. In Addis Ababa
(A.A.U, 2026-02-01) Eyerusalem Melese; Abera Legesse
The primary objective of the study was to examine the effect of E-banking service quality on customer satisfaction at NIB International Bank S.C. in Addis Ababa. This research is highly relevant to stakeholders in the banking and financial services sector, as it offers practical insights into leveraging E-banking innovations to enhance customer satisfaction and maintain a competitive edge in a rapidly digitizing financial environment. A quantitative research approach with an explanatory research design was employed and data were collected from 390 E-banking user using structure questionnaires aligned with the study objectives and relevant literature. Statistical tools like explanatory correlation techniques and multiple regression analysis were used in data analysis. The finding indicated that all e-banking service dimensions recorded mean scores above the midpoint indicating generally positive customer perceptions. Customer satisfaction was positively and significantly impacted by responsiveness customer support security innovation and user interface according to correlation and regression analyses however ease of use despite its high rating did not have a statistically significant impact. The strength of the identified predictors was highlighted by the regression model which accounts for 72.8% of variance in customer satisfaction. The study concluded that while NIB International Bank had made significant strides in implementing digital banking channels more advancement in customer service, user interface design, IT infrastructure customer support mechanism, platforms efficiency, and cyber security measures were essential to enhance overall customer satisfaction
Factors Affecting Adoption of Mobile Banking: A Case Study on The Commercial Bank of Ethiopia
(A.A.U, 2026-02-01) Matiyas Worku; Yared Asrat; Tilahum
This study was conducted to understand and analyze the foctors influencing the adoption of M banking with CBE as the case study and in the context of Addis Ababa, at selected branches of the bank. It was conducted by employing the Technology-Organization-Environment (TOE) framework, which mainly focus on examining determinants of M-banking adoption at firm level. A total of 139 valid responses were collected out of 155 questionnaires distributed to the randomly selected digital banking staffs of CBE at selected branches of Addis Ababa. The questionnaire’s reliability was confirmed with a Cronbach’s Alpha value of 0.90. This study adopted quantitative research approach and it is based on closed end questionnaires with 5-point Likert-scale. Multi stage sampling was employed to select respondents for this study. The collected data from respondents was analyzed using SPSS software version 23. A descriptive and regression analysis method was employed to analyze the collected data. In addition, interview was conducted on key informants to reinforce the quantitative findings. A secondary data was reviewed from several publications to support the findings of this study. The result of the regression analysis shows that the most significant influence on M-banking adoption arises from the technological factors of the TOE framework. But organizational and environmental factors were found to have no statistical significance in the multiple regression, this is likely due to the shared variance which is observed in the correlation analysis among the independent variables. Overall, the regression model was able to explain 30.6% of the variance in m-banking adoption were organizational and environmental factors were found to be statistically insignificant likely due to the shared influence and suppression effects among the explanatory variables. The interview responses from key informants indicates that external barriers such as unstable national internet connectivity, internal challenges like frequent service interruptions, customers' need for physical receipts, and strong concerns about fraud and social-engineering were the main challenges that hindered the adoption of M-banking adoption at CBE. Keywords: M-banking, adoption, TOE, CBE, technology, organization, environment
Effects of Political Instability on Commercial Bank’s Performance in the Case of Selected Sub-Saharanafrica countries
(A.A.U, 2025-01-20) Getachew Molla; Abdurezack Hussein (PhD)
This paper evaluates the effects of political instability on commericial bank performance in case of selected sub-saharan African countries for the period 2016-2023. In order to test the proposed relationship a sample of under listed top three banks at the each countries was utilized. The study employed secondary data collected from annual audited financial report for each banks and world bank. In addition, macro economic variables including political instability indicators was gathered through world development indicators databases. The study was used fixed effect panel model to accomplish the proposed objectives. Diagnostic tests such as heteroskedasticity, cross sectional independence, serial correlation and multicollinearity test was performed before employing FE model. The result of fixed effect model indicate that ROA is significantly and negatively affected by political instability during the period of study, this mean there is a posetive relationship between political stability and bank performance. Internal determinants of commercial banks are very crucial and singnificant. Loan to deposit volume, bank’s size, and deposit volume, have a positive and significant impact on bank’s performance, where as non-performing loan have a negative and significant effect on bank performance. However, macroeconomic variable are insignificant. The study contributes knowledge in the field of political instability and bank profitablity for sub-Saharan African countries and all africa. As a result, this paper will provide a significant enhancement to the theoretical literature, the industry,and policymakers.
The Effect of Financial Inclusion on Inflation: The Case of Ethiopia
(A.A.U, 2024-07-02) Gebe Yemataw Gzaw; Jemberu Lulie (PhD)
Currently,financial inclusion is receiving significant attention in policy circles due to its role in fostering national development and managing inflation through effectivemonetary policy transmission in the economy. This study focuses on analyzing how financial inclusion impact inflation levels in Ethiopia. Both long and short-run error correction time series model were estimated in the datasets spanning from 2010Q3 to 2023Q2. The results indicated that an increased in financial inclusion throughits measurements i.e. number of financial access points, per 100,000 persons and utilization of savings account per 1000 adults, led to a reduction in inflation by encouraging individuals to use formal financial systems by promoting efficient monetary transmission channel in the entire economy. Additionally, variables exchange rate and money supply demonstrated a positive impact on inflation levels. To effectively manage inflation, predict price movements in the economy, and make informed decisions, financial policymakers should prioritize expanding financial inclusion by increasing access points and offering suitable and affordable financial products and services specifically targeting the excluded and underserved segments of society. Monitoring broad money and exchange rates are also crucial, as they have significant effects on prices.
Analyzing the Impacts of Petroleum Consumption on Economic Growth in Ethiopia
(AAU, 2025-01-20) Alemnew Amslau; Tewodros Negash (PhD)
Ethiopia, like any other emerging countries, has demonstrated poor economic performance. Although the fact that the country's current economic performance is highly remarkable, there are a number of challenges to sustain the present trend of economic growth. The main challenge is the availability and scarcity of energy sources. Energy is a driving force of development and plays a significant role in the country’s economic growth and prosperity. Ethiopia's economy is heavily dependent on imported petroleum products. Petroleum is one of the most important commodities in social, political and economic challenges. The main objective of the study was to examine the impacts of petroleum consumption on economic growth. Specifically, it determined the short and long run relationship between petroleum consumption and economic growth. It also examined the impacts of petroleum price on economic growth, to analyzing and showing the trends of petroleum consumption and economic growth over the study period. It modified a growth model with GDP as the dependent variable and labour force, domestic capital investment and petroleum consumption and unit price of petroleum products as the independent variables to be estimated. An exploratory research design was used and research work followed a quanitative approach by using secondary source of data was used to collect information and Error Correction model was used to estimate. First, the study determined the stationarity of the variables by using ADF and phillips-perron test and its result shows that all the variables are non-stationary at levels but stationary at first difference. The Cointegration tests result indicated that the null hypothesis of no-cointegration was rejected at 5% level of significance. The estimation results of the long-run relationship revealed that the relationship between PC,AUPP and DCI with GDP was negative and statistically significant but LF was positive and not statistically significant. The estimated methods of the error-correction model shows that in the short run there was a positive and statistical insignificance impacts of lagged petroleum consumption on real GDP. The Granger causality test result shows there was unidirectional causal relationship between petroleum consumption to GDP. Finally the result concluded that petroleum consumption has negative impacts on economic growth and the country is recommended that to derives or formulate policy implications from the results obtained regarding the implementations of the upstream projects of the petroleum and gas industry and to develop in alternative energy sources as substitutes of petroleum products
Macroeconomic, Institutional and political Determinants of Foreign aid Inflows: Evidence from selected sub-Saharan African Countries
(A.AU., 2023-06-01) Yimer Ali Mekonnen; Abdurezack Hussien (Ph.D)
Using Blundell and Bond's one-step system GMM after controlling economic variables, this study evaluated the macroeconomic, political, and institutional determinants of the flows of official development in 40 SSA nations for the period 2002-2021. In order to reduce the possibility of multicolinearity and raise the weight of the variables, it calculated a weighted index using principal component analysis from the six governance indicators to quantify political stability and institutional excellence. The study's findings showed that institutional quality, the consumer price index, and lagged value government development assistance have a favorable influence on the flow of aid by 1% level of significant. The flow of government development assistance into SSA nations is also restricted by political stability, GDP per capita, and trade volume by 5%, 1%, and 1% level of significance. The study's policy recommendation is that governments in SSA nations can attract foreign capital by enhancing institutional quality and their ability to increase political stability and citizens' per capita income.
Foreign Direct Investment and Uncertainty: Evidence from Sub-saharan Africa
(A.A.U, 2021-06) Tarekegn, Getasew; Boka, Jonse Bane (PhD)
This paper examines how macroeconomic, political, and property rights uncertainties in affecting FDI inflows into sub-Saharan Africa (SSA). The study applies both fixed effect and Arellano-Bond GMM dynamic panel data models for a sample of 26 sub-Saharan Africa countries over the period from 2000 to 2018. The study conducts model diagnostic and stationarity tests to ensure that estimation results are reliable. The findings of the study show that macroeconomic uncertainty as proxied by inflation and exchange rates are negatively related to the inflows of FDI to SSA. Our results also show that property rights uncertainty as proxied by rule of law has a positive effect on FDI inflows while, investment profile has negative effect on FDI inflows to SSA. Similarly, the overall measure of political uncertainty is negatively associated with FDI inflows to SSA. However, internal and external conflict, corruption, and bureaucratic quality have no significant effect on FDI inflows to SSA. Other variables included in the model, such as trade openness, rate of return on capital, and infrastructure, have a positive impact on FDI inflows. The policy implications of the study are that governments in SSA could attract more FDI by minimizing political risks, improving property rights enforcement, and managing key macroeconomic variables like inflation and exchange rate.
The Impact of Pesticides on Maize Production in Southern Ethiopia
(A.A.U, 2021-06) Yaynie, Yordanos; Araya, Mesele (Dr)
Maize production is an important economic activity among smallholder farmers in southern Ethiopia, serving as a major source of income and food security. Maize farmers often use pesticides to control pests, but it poses environmental and human health risks. While the productivity of pesticides has been previously studied, most studies treated pesticide as a direct yield enhancing input rather that a damage reducing one. In this study, we analyze the productivity impact of pesticides using a damage control production function. We estimated Cobb-Douglas production functions using Nonlinear Least Square (NLS) and Two Stage Nonlinear Least Square (2SNLS) methods. We use panel datasets collected in 2018 and 2020 in the southern Ethiopia by the Social Sciences and Impact Assessment Unit of the International Centre of Insect Physiology and Ecology (icipe). The results of the NLS regression indicated that pesticides have no significant effect on maize yield. However, when we use the 2SNLS to control for endogeneity of pesticides, the coefficient of pesticides remains positive and statistically significant, indicating that it increases maize yield. The first stage estimated results of the 2SNLS indicates that pesticide use is affected by pesticide prices, contact with extension agents, application of organic fertilizers and the socio-economic characteristics of households. Furthermore, the marginal product of 1 liter of pesticide is found to be 51 kg of maize yield, which indicates that pesticides reduce yield losses due to pests. Calculations of optimal amount of pesticides show that farmers could maximize their profit at an average of 8.4 liters of pesticides. An average quantity above or below this value indicates an overuse or underuse of pesticides. However, this estimate is from the private profit maximizing point of view, but it is important to consider the health and environmental effects of pesticides. To fully understand the societal cost of pesticides, future studies may need to collect data on not only the private benefits, but also the potential costs associated with public health and the environment.
The Relationship Between Inflation and Value of Imports in Ethiopa: An Autoregressive Distributed Lag Approach
(A.A.U, 2021-06) Tsedeke, Henok; Endale, Kefyalew (Phd)
Stable price is one of the main goals of any country and it’s considered by governments and policy makers and hence investigating the main cause of inflation is of great importance. Thus, this study aims to examine factors affecting inflation in Ethiopia with a focus on the role of import value of goods and services. An ARDL bound testing model was employed to investigate the relationship using a data covering the years 1981 to 2019. The results reveals that import value to GDP ratio and money growth increases inflation both in the short run and long run; lending interest has an increasing effect in short run but decreases inflation in the long run; official exchange rate, external debt to GDP ratio and growth rate of real GDP have a significant negative effect on general inflation in long run; Whereas external debt to GDP ratio has a negative and insignificant effect on general inflation in the short run. But, growth rate of real domestic product has a negative and significant effect on general inflation in short run. Finally, based on the estimation result, the researcher recommends the concerned body to reduce the severity of inflation in the country. The exchange rate policy should be implemented that will be favorable to reduce the cost of imported capital goods and the government should look inward for supplying of raw materials locally promotes investment in the area where the required raw materials are available locally.
Mobilization of Resources through Taxation in Ethiopia
(Addis Ababa University, 1985-06) Ghirmay, Teame; Gurmu, Shifferaw (PhD)
The task of mobi l i zing r esources f or publ ic sector outlays iB a maJor conce rn of e conoml C policy ln Ethi opia. This is es pec i ally t r ue l n postr evolution Ethiopi a , wher e t he soc i c-pol it i cal changes that have taken place have have caused the nat i on t o r e l y heavily on the public sector f or i t s social and economic devel opments . Taxati on i s the pri mary means of mobil izing r esour ces in the country . A str ong tax per f ormance is thus an indispensable condit i on i nor der for t he gove r nment to s t ep up its devel opment expenditur es . The ob j ective of thi s study was to ascer tai n the compat i bili ty of the t ax sys t em wi t h the goal of resource mobili zation. Towards this end the structure of t he t ax r evenue was analysed and its impact on the r evenue r alslng capabili ty of the tax system examined . Mor eover , t he magnitude of t he t f:l.X r evenue r a i sed ,vas eval uated by compar ing it with the t axabl e capacity of t he count ry , and r evenue needs of the gover nment . Final ly~ the t ax effort made l n the past was assessed, and the ~otent i ali ty of the t ax system t o mobi l i ze an increasing share of the nati onal lncome ln the f ut ur e examined. The outcome of the study indicat ed that despite the inc r eased efforts made t o i mpr ove the effectiveness (If the tax system, tax revenue l n Ethi opi a r emalns i nadequate (skimp) , unstable; and in f l exible . The cause of such anomal ous conditions wer e attributed to among others , faulty t ax ploi cy , and weakness i n impliment at i on of the tax laws . It was suggested that a synchronized action both at pol icy and executi on as pect of the taxation pr ocess can impr ove the pe r fo r mance of the t ax system .
An analysis of Government Budget in Ethiopia:With Particular Reference to Government Expenditure 1958-1977(E.C.)
(A.A.U, 1990-06) Mesghena, Ghirmai; V, Suranyi (dr)
Among the factors that enable to promote development include a well preformed development plan generating and mobilizing resources proper allocation of these resources, particuarly the allocution of financial resources among investment(capital) and consummation ( recurrent), and an efficient utilization of the meager resources that can be mobilized from external and domoestic sources. In Ethiopia,a tremendous growth in budgetary expenditure has been observed at the same time, this increase in goverrunent expenditure has been going to the recurrent and from it a greater proportion to the non-productive sectors , such as defence and to sustain and run the state machinery. This has been accompenied by a large deficit in the budget of the goverrunent. The objective of this study is to find out the factors that are consideed to be responsible to bring about the tremendous grouth in Government. expenditure and also to assess reasons for the allocation of Government fund among alternative proforemanse To meet this end , stepwise regression analysis is employed. This is further reported by additional analysis of factors like insti titutionsons and procedures in expenditure allocation As the case is in the highly developed and least developed countries , Goverrunent expenditure in Ethiopia also was affected more by non-economic factors. however, different components of expenture behaved differently. Finally various suggestions are forwarded to mitigate the existing mitigate proble. even though recommendations to increase revenue by tax are to be suported, particular consideration should be made on the role of the Government in promoting; socio-economic development and the allocation of expenoiture among alternative programs. The Government can not: continue depending; on foreign sources and defiicitfinancing as the major and permanent sources of financing its expenditure with out causingf'.sover consequences to the over all development of the country
The Problem of Wage Determination in Ethiopia: A Case Study of the State-owned Textile Industries
(A.A.U, 1986-06) Amha, Wolday; Mulat, Teshome (Dr)
The objective of this study has been to identify inter' industry and interpersonal wage differential and to explain the determinants of mean wages and individual wares in the state-owned textile industries. The necessary information was obtained through sample survey and secondary sources , The coefficient of variation. simple range, percentages, standard deviation, coefficient of variation, Lorenz curve, Gini efficient, multiple linear and semi- logarithmic regression, and principal component methods were used to analyze the data. The results indicate that 1) the institutional variables such as the government legislations and directives influence the wage determination process in the state-owned textile industries . 2) there exists high inter 'industry and interpersonal wage differential. 3) production, profit and fixed assets jointly affect the mean wage differential between the industries. 4) Education and experience within an industry are increasing function of wages. Moreover, the variables sex, marital status, occupation, experience outside the industry, and change of jobs influence the level of wages in the state"' owned textile industries. The paper suggests for the restructuring of the existing wage system particularly the introduction of wage policy on the needs of the economy not only for the textile sector but also for the whole economy .
The Development of Agricultural Producers' Cooperatives in Ethiopia: Cases from Arsi Region
(A.A.U, 1989-06) Yirko, Wegenie; Gebre Kiros, Fassil (Dr)
This thesis is directed at the performance evaluation of the cooperatives sub sector - both at the macro and micro levels- as well as the study of the problems of development of the cooperate vies with a view of making recommendations which may enhance the development of the agricultural sector in general and the cooperative sector in particular . Results indicate that the performance of the cooperative sub sector at the macro level have been less than satisfactory . While the cooperative farms are becoming more and more resource intensive, productive Vities of the main factor s of production, l and labor are declining . This imply a need to counteract against factors which cause the decline . The climatic condition is one nbviou5 cause. The need to counteract the drought condition on the one hand, and the availability huge , labor or, the other then suggests labor investment towards the development of irrigated agriculture. Macro level studies also indicated poor performance of the cooperative sector compiled with the individual and state farms in terms of yield . From the view point of maximizing returns from l and to the society, this suggests retaining land under private holdings than placing them under cooperatives , which in turn may imply a slow rate of growth of t hat sub sector . The performance evaluation of the cooperatives at the micro level was specifically directed at looking in to their allocate efficiency. Towards that end this study was conducted on 26 agricultural producers' cooperatives in Arsi Region . These cooperatives were classified into groups on the bas is of techno logical factors. Representative farms were derived from each group and Linear Programming mode l s were developed for each of the representative farms . comparison of the acute with the optima pattern indicated sub-optimality their cropping pattern,. In all cases results suggested a reallocation of land away from the two basic products of the region. great and barley to other crops . The optimal pattern which was obtained from the computer analysis differed from one typical farm to another - a situation which suggest a differentiated l and use policy. as far as resource use is concerned, l and, in the optimal solution was found to be a limiting factor, in all the cooperatives, whose marginal value product increases with a decrease in land - labor ratio suggesting a need for an appropriate land holding and land allocation policy for each of the cooperatives with takes resource availability of the cooperatives into account. Our study also showed underutilization of plowing labor and ox power. still, however, during this operational of period cooperatives utilize hired tractors. Underutilization/labor and Ox power, on the one hdnd, and the use of harder tractors on the other then implies a need to ovoid hired tractors, which, in turn suggest a need to look into the governments' policy of hiring stat ions. The Optimal solution also showed that weeding, harvesting and/or threshing labor are Limiting for same cooperatives. in these cooperatives, However, there exists abundant unutilized family labor. This then suggest a need to draw policy which will ensure the flow of f family labor into the operations of the cooper actives. in most of the socialistic countries this problem .was resolved by introducing family contract system The study also indicated a number. of problems which hamper the development of cooperatives. one important problems is the input - out put pricing system which creates disincentive on the cooperatives to increase their products . This problem is mainly the result of the Marketing policy of the government which restrict s the cooperatives sale of their produce to the AMC a problem whose solution call for the Introduction of competition the in the of inputs and the. Sale of output. other problems in clued the problem of declining income of Members which cannot cover their expenditure, problems of forced member and absence of democracy in the decision milking process, the solutions of which respectively require untying labor from,1I unnecessary operations of the cooperatives, so that it may create additional income, by introducing the family contract system, establishing the cooperatives in accordance with the principle of voluntarism and enhancing members' participation in the decision making process.

Browse

Recent Submissions