Department of Economics

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45802

Department of Economics

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    THE ECONOMIC IMPACT OF URBAN YOUTH UNEMPLOYMENT THE CASE OF WOLKITE TOWN, CENTERAL ETHIOPIA
    (Wolkite University, 2023) WONDIMU BERHANU
    The objective of this study is Economic impact of urban youth unemployment the case of Wolkite town,central Ethiopia.A multi-stage sampling technique was used to select 350 respondentsandpurposive sampling techniques were used. This study used both primary and secondary data and quantitative data obtained in addition, key informants interview were used for qualitative information. Both descriptive and econometric models were used to analyze the collected data.For the econometric analysis binary logit model were used to identify determinates of employment status and .to address the effect unemployment.The survey results show that 54.3% and 45.7% respondents were unemployed and employed respondents respectively.The Propensity score matching method was applied to address the economic impact of youth unemployment.Furthermore, based on the results of logit model, sex of respondents, educational in status, marital status respondents, migration status, access to training, access to credit, access to job opportunities,access to land, are significant and they affect the unemployment status of respondents. Causes of unemployment in study area; ruralurban migrants, poor education system, urban-urban migration ,high population growth, and,lack of training and skill, lack of investment in the town and lack of industrial establishment, and preferring better job. The consequence of the unemployment are impacts on consumption expenditure, Therefore, the future intervention should focus to decrease unemployment in the study area government giving awareness to active age population and female how to create self-employment and, giving training access, and increasing investment activity in the town andtechnical and vocational training programs should focus on producing qualified graduates with market demanded skills and government provide the access to land for youth they invest in the land .
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    SCHOOL OF GRADUATE STUDIES MARKET CHAIN ANALYSIS OF RED PEPPER
    (Wolkite University, 2023-01-30) WALIE YIGZAW
    The objective of this study was to conduct market chain analysis, to examine the red pepper, market structure, conduct and performance, analyze profitability of red pepper production, identify the determinants of households marketable surplus and Identify the major constraints, opportunities of production and supply of the red pepper to the market using primary data collected from households through semi structured questionnaire. The producers’ survey result revealed that large proportion of farmers supply the product to the market. The producers and traders survey result revealed that even the red pepper value chain suffers from low production, low quality, less value addition and irregularity of supply red pepper production was profitable for both producers and traders. The actors were producer, collector, wholesaler, retailer, processer and consumer. Hence the structure of the red pepper market in the study area was somewhat competitive. The profitability analysis also indicates that red pepper production was profitable. The average amount of red pepper supplied to the market per producer was 377.25kg with minimum amount of 0kg and maximum of 1050kg. The variables that influenced the marketable supply positively were farm size, price, family size and extension contact. Among the significant variables farm size, price and extension contact were highly significant at 1% significant level and family size at 10% significant level. The variables that influenced the marketable supply negatively were non-farm income, credit access and red pepper diseases affect market supply of red pepper negatively at 1 % level of significant. The major problems identified are diseases and pest, law product, need high men power and land selective behavior of red pepper. To solve these problems the government should be increase production by management of agronomy and pest, increase access to diseases management education and training, and the producers should be establish storage and processing facilities are recommended
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    ECONOMICEFFICIENCY OF URBAN DAIRY FARMING IN WOLISO TOWN; OROMIA, ETHIOPIA
    (Wolkite University, 2023-01-30) SENAIT TEKA
    The aim of the study was to measure the level of technical, allocative and economic efficiency of urban dairy farming and to identify factors affecting them in the study area. The study was conducted using Cross-sectional data on socio-economic factors and milk production collected from the 184urban dairy farmers sampled in 2015, using semi-structured questionnaires. The study used the Stochastic Frontier model to analyze the technical, Allocative and economic efficiency of milk production, while Tobit model was used to assess the factors associated with economic efficiency. The results indicated that the farmers had a mean of 84.8% in technical efficiency, 78.1% in Allocative efficiency and 66.3% in economic efficiency. The results showed that the economic inefficiency among the farmers is mostly caused by low Allocative efficiency since the farmers indicated high levels of technical efficiency. From the findings, there were considerable production inefficiencies and thus there was room for increasing productivity through the use of available inputs and reducing costs. Farmers having utilization of the available resources would yield a proportionate increase in the milk output. Increasing herd sizes, feeding animals with enough concentrates and ensuring the animals’ health care costs are met were found to be some of the solutions to the low milk productivity in urban dairy farming. The cost of concentrates and other feeds was found to be the major component of the total cost of dairy production. However, the Allocative efficiency level among the farmers was quite high, an indication that the farmers in the study area, though resource-poor, were efficient at minimizing costs. The study indicated that household size, having dairy farming as the main source of income, access to credit, hired labour, cost of fodder and concentrates were the significant factors associated with economic efficiency in urban dairy farmers in woliso. Price subsidies on dairy inputs, especially fodder and concentrate, as well as better milk prices, are some of the interventions that will see an increase in efficiency resulting in an increase in milk productivity.Policy makers should focus on increasing supply of fodder and control price of fodder and concentrates to increase milk yield further. Providing training to dairy farmers is important to increase efficiency by increasing management skills of the dairy farmers. The management skill development of dairy farmers needs to focus on feeding and cattle husbandry.
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    DETERMINANTS OF HOUSEHOLD PARTICIPATION IN URBAN AGRICULTURE: THE CASE OF GURAGE ZONE, ETHIOPIA
    (Wolkite University, 2023-01-30) ALEMU LEMMA
    Urban agriculture plays a very important role in improving household income and decreasingpoverty. Despite its significant role in fulfilling the basic demand of low-income families,household’s participation were very low. Therefore, this study was conducted to identify factorsthat determine household’s participation in urban agriculture and assess the impact ofparticipation on household income in Gurage zone. The study utilized both primary andsecondary data sources, and a multi-stage sampling technique was employed to gatherinformation from 204 households using a structured questionnaire. The logistic regression modelwas employed to analyze the determinants of participation in urban agriculture and propensityscore matching was used to analyze the impact of participation on household income. The resultsof the study show that, 25.76% of the households were practicing in urban agriculture.Household’s decision to participate in urban agriculture was influenced by household sex,education level, income from other sources, access to credit, access to water, access to improvedinputs and access to extension services. The impact analysis results of this study show that urbanagriculture has a positive significant impact on household total income. The average treatmenteffect on the treated was ETB 6803 and it was significant at 1% significance level. In conclusion,this study suggest that urban agriculture practice should be encouraged by governmental andnon-governmental organizations through provision of credit and promotion of alternative watersources to increase urban agriculture participation in the study area
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    INTERNATIONAL REMITTANCE AND ECONOMIC GROWTH IN ETHIOPIA: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH
    (WOLKITE UNIVERSITY, 2018-06) ABDURAHMAN AGIRO
    Having the general objective of investigating the relationship between international remittances and economic growth in Ethiopia, this study used an auto regressive distributed lag (ARDL) model or Bound Testing approach to co-integration. The data used is from Ethiopian economic association, national bank of Ethiopia and World Bank Development Indicators which spans from 1980 to 2016. The outcome of the study revealed that, both the long run and short run growth impact of international remittance during the study period is positive and significant. Apart from this, other growth determinant factors, such as real gross fixed capital formation, human capita and consumer price index are found to significantly and positively affecting growth in Ethiopia. Trade openness has found Negative and significantly impact economic growth. Moreover, the Granger Causality test has confirmed that there is a unidirectional causality which runs from remittance to output. The most important policy implication that comes out of this study is that the government as well as other concerned stakeholders should work on easing the remittance sending process and cost, so as to better extract the economic benefit of international remittance.
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    IMPACT OF SMALL SCALE IRRIGATION ON HOUSEHOLD INCOME: IN CASE OF MESKAN WOREDA, CENTRAL ETHIOPIA
    (WOLKITE UNIVERSITY, 2023-11) REDWAN MUNA KEMAL
    This study investigates the impact of small scale irrigation on household income by taking cross-sectional data obtained from Meskan Woreda, Misrak Guraghe Zone of Central Ethiopia. The study aimed at assessing the impact of small scale irrigation on household's income. Data for this study were collected from both primary and secondary sources. A sample of 372 households (120 households were user group whereas, 252households were non-user group) from four kebeles was selected using multistage simple random sampling. The data were analyzed by using a combination of both descriptive statistics and econometric model such as, (PSM) were employed to analyze data. By applying a propensity score matching technique, the study found that the participation of small scale irrigation has increased the net income of user households by 10.65% per annum compared to non-user households. The estimates of the propensity score matching of the logit model result showed that Access to Extension Services, Livestock Holding, farming experience and Sex of the respondent affects households’ probability of participation in small scale irrigation have positive and statistically affected the income of small scale irrigation at 1% and 10% significance level. While, more precisely land holding size, Dependency Ratio and Age of household head affect households’ probability of participation in small scale irrigation have negative and significant effect on income of small scale irrigation participation. The estimated results revealed that households, who owned larger land holding size, get technical advice, training or participated on field demonstrations by taking agricultural extension services, Livestock Holding and farming experience were more likely to benefit from the use of small scale irrigation, ceteris paribus. Accordingly, the result revealed that the most important small scale irrigation practice designed to increase production and productivity which reduces risk related with rainfall variability and increasing income of rural farm households. Hence, overall it can be concluded that participation in the small-scale irrigation has positive effect on most of the household income and that an expansion of small scale irrigation schemes there by improve small holder rural farm household’s annual income. Therefore, policy makers and other stakeholder’s should give due attention in irrigation technology.
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    FACTORS AFFECTING INTEREST FREE BANKING IN ETHIOPIA: A CASE STUDY OF COMMERCIAL BANKS LOCATED SOUTH-WEST ADDIS ABABA
    (WOLKITE UNIVERSITY, 2021-07) FIKRU ASERA
    Banking industry fosters economic growth through financial intermediation. Which helps in meeting a debtor with a creditor and perform host of other financial services. Ethiopia adopted Interest Free Banking window scheme in 2011 and Full-fledged interest-free banking by June, 2021 as alternative banking system in addition to conventional by considering substantial number of unbanked Muslims communities, which estimated more than 38 million or 33.8% of total population. The emergence of Interest free financial system has created a new dimension to the current economic models and financial developments. Hence, use of such innovations is highly appreciated even if its successes depend on the various internal and external factors. Therefore, this study aims to investigate the main factors affecting interest-free banking system. For these purposes, primary and secondary data were collected and analyzed by using descriptively and inferential statistics. Finally, the model suggests that Interest free banking has positive and strong relationships with internal and external factors of qualified and skilled human resource, creation of awareness to community, ,suitable and effective banking policy and procedure, effectiveness of existing banks, overall managerial efficiency, working with Sherian Verdict and Principle, Research and development(RD) while contradict with Treasury risk of liquidity and solvency. Finally, enhancing and enforcing standards of regulatory law, policy and procedure is advisable for all commercial banks to sustain all its strength, and to improve their limitation.
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    ASSESSMENT OF INTEREST FREE BANKING SERVICE (CASE OF COMMERCIAL BANK OF ETHIOPIA WEST ADDIS ABABA DISTRICT)
    (WOLKITE UNIVERSITY, 2018-06) BERHANU BEYENE NURGI
    The main objective of this Study is to assess interest free banking service in commercial bank of Ethiopia- West Addis Ababa District. The study has employed descriptive research design and has used both primary and secondary data which have been collected through structured questionnaire and semi structured interview. A total of 398 sample respondents were taken through judgment & Convenience sampling for Employees & Customers respectively. The data was analyzed using descriptive statistics of mean, frequency, percentage, and standard deviation using Statistical Package for Social Science version 16 software. Based on the analysis of the study, the result shows that there is performance lagging of Interest free Banking financing products, lack of well trained & experienced employees with Interest free Banking in the branches, lack of awareness of customer about Interest free Banking products, inadequate marketing and promotion, unavailability of Interest free Banking financing products in all ofCommercial Bank of Ethiopia branches, and Interest free Banking as ameans of resource mobilization Strategy in Commercial Bank of Ethiopia. The study concluded that, Commercial Bank of Ethiopia has the capacity to provide the other interest free banking products & Service to its customers provided that there is commitment and support from all stakeholders of the bank including National Bank of Ethiopia. Based on the results of the findings, the study recommended that Interest free Banking should be given the necessary attention and support from all stakeholders, the bank has to be ready and committed in all aspect to deliver Interest free Banking products, aggressive promotion and marketing campaign about Interest free Banking products should be made, The Bank has to increase the accessibility of Interest free Banking products through increasing Interest Free Banking Window at each service providing Branch.
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    SAVING AND ECONOMIC GROWTH IN ETHIOPIA
    (WOLKITE UNIVERSITY, 2019-06) TUMSIDO TIRFE
    The objective of this paper is to investigate causal relationship between gross domestic savingand economic growth of Ethiopia by using annual time series data for the period of 1975/76-2017/18. In order to achieve these objectives by using unit roots tests, multivariate Johansen co integration, Vector Autoregressive (VAR), Error correction model (VECM) and Granger Causality tests were undertaken. The result of Johansen Co-integration Test indicates that there is presence of one co-integrating vector in the model. The long run and short run regression results indicates that though there exists positive relationship between gross domestic saving and economic growth, the impact of gross domestic savings on economic growth is statistically significant in both cases. Finally, the result of Granger causality test reviled that unidirectional relationship exists between gross domestic product (GDP) and gross domestic savings; and the causality run from gross domestic product (GDP) to gross domestic savings. So the overall short run results favor Keynesian point of view that savings depend upon level of output. Based on the findings of study, government and policymakers should employ policies that would increase domestic saving to the extent it becomes a driving force for economic growth.
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    Impact of Self Help Groups (SHG) on women welfare indicators in Waliso Town, South West Shoa Zone, Oromia Region, Ethiopia
    (WOLKITE UNIVERSITY, 2019-01) Misgana Gedafa Kitesa
    The study was initiated to assess the impacts of self-help groups in women welfare indicators, investigate the welfare of women, identify the factors by using random sampling technique in cross sectional data types with propensity score match model to evaluate the treated and control group and identify the challenges encountered. Self help groups (SHG) face at unit and system levels and explore the contribution of social organizations in strengthening SHG. The study result revealed that self-help groups (SHG) are playing important role in determining the status of women in self-help groups (SHG) and the level of decision making in the group and at household level. The core point of this paper is that working impact of Self help group which contains the introduction part literature review methodology result and discussion and the conclusion and recommendation. Women are also advocating about women and their families in several occasions and are attracting the attention of the administration at different level as important partner. The income, asset accumulation, food and non food consumption expenditure and saving of women have shown improvement with the amount of loan they borrow from the inbox of the self-help groups (SHG). The welfare indicators that women incurred from the organization in Self help group make them more economically independent. Generally, the impact of self-help groups (SHGs) is magnificent in improving women welfare and makes themto be economically self-reliant. Types of occupation such as traditional alcohol work, preparing and selling dry “enjera”, animal fattening, the Communication and experience; saving and access to credit are significant and need more external support are more the focus of this stud