Water Efficient Technology Use of Firms and Its Effect on Technical Efficiency: Empirical Evidences from Industrial Firms Funded By the Development Bank of Ethiopia
| dc.contributor.advisor | Diriba, Dr. Dawit | |
| dc.contributor.author | Dagne, Desta | |
| dc.date.accessioned | 2019-10-01T08:40:02Z | |
| dc.date.accessioned | 2023-11-18T08:42:21Z | |
| dc.date.available | 2019-10-01T08:40:02Z | |
| dc.date.available | 2023-11-18T08:42:21Z | |
| dc.date.issued | 2019-06 | |
| dc.description.abstract | Industrialization plays an important role in economic development. Of which, the manufacturing and agro processing sub sectors role in growth is immense. Cognizant to; the government of Ethiopia has given an attention to the industry sector under the Growth and Transformation Plans to create a foundation for the sector to take a leading role in the economy. Industrial firms are top priority for the government in developing the export sector; and the Development Bank of Ethiopia is mandated to provide finance. This study was conducted on 153 sample industrial firms which were funded by Development Bank of Ethiopia. The study applied a parametric stochastic frontier approach (SFA) in estimating the technical efficiency of industrial firms situated in Addis Ababa & its surrounding those financed by DBE. In this study translog frontier model was specified to represent the frontier function. The parameter estimates by industrial groups are obtained using Maximum-likelihood method. Water is critical for industries hence it can be taken as the essential input. It is also realized that industrial water use is increasing rapidly thereby requiring water management and further efforts shall be made. The technical efficiency of firms most of the time was analyzed using labor, capital and intermediate materials only; without giving due attention to the water input used in production. This implies there is a gap in studies conducted on technical efficiency analysis in taking in to account the water input as a factor of production. Water input was so well thought-out in this study. The study result reveals that the estimated coefficients for the water inputs are positive across all industrial firms, but its significant level differ with different industrial groups. For example in industries such as food and beverages, tanning & leather industries, paper & printings, and rubber & plastics industries; the estimated coefficient for the water input is positive and significant at 1 percent. Whereas in industries; like chemicals and furniture’s; the coefficients for the water input is positive and significant at 5 percent. The study result reveals variations in efficiency exist among firms within the industrial group, indicating that there is room for improving efficiency levels if firms use the water input in a more efficient manner. Common to some industrial firms would be inability to operate at their optimum production capacity. The study result also reveals the aggregate mean technical efficiency of operational industrial firms funded by DBE was 43.8 percent during the study period. The study findings provide evidence that water efficient technology usage in combination with other variables reinforce each others have significant effects on technical efficiency. The findings of this study have also recommendations in that; it primarily support for decision making by firm owners, funding institutions and the policy makers. Hence, national and regional policies that promote water efficient technology use are likely to enhance efficient utilization of the water resources; ensure sustainable use of the water resources and increase productivity of industrial firms. Keywords: Water input, stochastic frontier Approach, Industrial firms, Water efficient technology use, Technical efficiency | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/12345678/19251 | |
| dc.language.iso | en | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Water input, stochastic frontier Approach, Industrial firms, Water efficient technology use, Technical efficiency | en_US |
| dc.title | Water Efficient Technology Use of Firms and Its Effect on Technical Efficiency: Empirical Evidences from Industrial Firms Funded By the Development Bank of Ethiopia | en_US |
| dc.type | Thesis | en_US |