Determinants of Domestic Private investment in the Manufacturing Sector in West Arsi Zone, Ethiopia
| dc.contributor.advisor | Yohannes Workeferehu | |
| dc.contributor.author | Genamo Irensa | |
| dc.date.accessioned | 2026-10-16T09:05:13Z | |
| dc.date.available | 2026-10-16T09:05:13Z | |
| dc.date.issued | 2026-06-02 | |
| dc.description.abstract | Background: Domestic private investment in the manufacturing sector plays a vital role in promoti economic growth, employment creation, industrialization, and poverty reduction. Despitegovernment efforts to encourage manufacturing investment in Ethiopia, domestic private investmentin the manufacturing sector remains low, particularly in the West Arsi Zone due to financial,infrastructural, institutional, and market-related challengesObjective: This study aimed to assess the determinants of domestic private investment in themanufacturing sector in West Arsi Zone, Oromia Region, Ethiopia. Methods: A cross-sectional descriptive and analytical study design was employed among domesticprivate manufacturing investors in West Arsi Zone. A stratified random sampling technique withproportional allocation was used to select 211 participants from a total of 382 registered investors.Primary data were collected using structured questionnaires and interviews, while descriptivestatistics and multiple linear regression analysis were conducted using SPSS to identify determinantsof domestic private investment. Key Findings: The study found that domestic private investment in the manufacturing sector waspositively associated with bank loan access (β=0.165, p=0.010), political instability-related factors(β=0.118, p=0.009), administrative factors (β=0.221, p=0.006), domestic market factors (β=0.757,p<0.001), infrastructural factors (β=1.222, p<0.001), and foreign market challenges (β=0.344,p=0.030). Conversely, financial constraints (β=−0.257, p<0.001), technological challenges(β=−0.155, p=0.017), and locational challenges (β=−0.655, p<0.001) negatively affected domesticprivate investment. Land access (p=0.313) and investment incentives (p=0.698) were not statisticallysignificant determinantsConclusion: Domestic private investment in the manufacturing sector of West Arsi Zone isinfluenced by multiple financial, institutional, infrastructural, technological, and market-relatedfactors. Improved infrastructure, access to finance, efficient administration, and stronger marketopportunities are essential to enhance investment performance, while financial and technologicalcoRecommendations: The government and relevant stakeholders should improve access to affordablefinance, simplify loan procedures, strengthen infrastructure services, improve political stability andadministrative efficiency, and promote technology adoption and innovation. In addition, effortsshould focus on improving market access and creating an enabling investment environment fordomestic private investorsnstraints remain major barriers. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/9162 | |
| dc.language.iso | en | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Domestic private investment | |
| dc.subject | Manufacturing sector | |
| dc.subject | Determinants | |
| dc.subject | West Arsi Zone | |
| dc.subject | Infrastructure | |
| dc.subject | Access to finance | |
| dc.subject | Ethiopia. | |
| dc.title | Determinants of Domestic Private investment in the Manufacturing Sector in West Arsi Zone, Ethiopia | |
| dc.type | Thesis |