Determinants of Private Investment in Ethiopia
| dc.contributor.advisor | G/Medhin, G/Hiwot (Ato) | |
| dc.contributor.author | Wasihun, Demeke | |
| dc.date.accessioned | 2018-11-03T10:31:25Z | |
| dc.date.accessioned | 2023-11-04T07:59:00Z | |
| dc.date.available | 2018-11-03T10:31:25Z | |
| dc.date.available | 2023-11-04T07:59:00Z | |
| dc.date.issued | 2018-02 | |
| dc.description | A thesis submitted to Addis Ababa university college of business and economics department of Accounting and Finance presented in partial fulfillment of the requirements for the degree of masters of science (MSC) in accounting and finance | en_US |
| dc.description.abstract | In the growth literature, investment has been regarded as one of the primary engines of growth. However, the Ethiopian private investment performance has been weak for long time. It had been stagnantly low until the end of the socialist regime. In spite of little improvement in the postāsocialist era, the share of private investment in GDP has never been above 6 percent even until 2003(IMF, 2005).Yet, the reasons behind the weak performance has not been well studied. Hence, investigating the performance trend and maim constraints of private investment in Ethiopia becomes the core theme of this study. Targeting at addressing a question of what measures should be taken to promote investment in the country, the research proceeds to test empirically whether Real GDP Per-capita; Inflation Rate; Real Lending Interest Rate; public Investment, External Debt Burden, and International Trade; improve the private investment performance of Ethiopia. The study was conducted basically using a 26-years secondary data (i.e. from 1991to 2016) on some important variables. The data is gathered from various sources such as NBE, NPC & MoFEC. Then, multiple regressions using OLS model was applied. And, to account for inherent problems of time series data, stationarity test was applied. The study made diagnostic tests to assess the fitness of the model. The study reveals that growth domestic product, and external debt burden, have significant positive relationship with private investment. However, inflation, annual interest rate and public investment have significant negative relationship with private investment. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people and enhance external debt, as long as it is used in productive investment (without creating serious debt servicing burden on the economy). Finally, as policy implication the study recommends government provision of fertile macroeconomic and investment climate. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/13705 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Determinants | en_US |
| dc.subject | Ethiopia | en_US |
| dc.subject | private investment | en_US |
| dc.title | Determinants of Private Investment in Ethiopia | en_US |
| dc.type | Thesis | en_US |