Department of Economics

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

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ANALYSIS OF FACTORS AFFECTING DEPOSIT MOBILIZATION OF PRIVATE COMMERCIAL BANKS IN ETHIOPIA
(WOLKITE UNIVERSITY, 2019-06) MEKUANINT AYALEW FELEKE, MEKUANINT
The aim of this study is analyzing factors affecting deposits mobilization of private commercial banks in Ethiopia. In doing so, the study used Pearson correlation analysis, ordinary least squares (OLS) technique, Granger causality analysis and descriptive statistics using secondary data. The data are collected from national bank of Ethiopia (NBE) and sampled private commercial banks from the year 2002 up to 2017. The collected panel data also, regressed based on random effect model. Econometric view version 8 (Eview 8) and stata version 13 statistical software has been used to perform the analysis. The result of correlation analysis showed that, deposit interest rate and lending interest rate strongly correlated, while the inflation weakly correlated with bank deposit. As per the Granger causality analysis, the variables included in the estimation model have a unidirectional relationship in the long run. In addition to, the results of regression analysis showed that, deposit interest rate; the lending interest rate and return on asset were positively and significantly influence the bank deposit. However, inflation affects bank’s deposit negatively and significantly during the study period. Finally the study has recommended that, the private commercial banks should give due emphasis to deposit mobilization tasks and its determining factors by considering mobilizing deposit is a way to sustain in the banking industry.
Analysis of Value Addition in Hide and Skin Tannery Industry around Addis Ababa City, Ethiopia
(Wolkite University, 2020) Feyera Hailu Fekene
Feyera Hailu Fekene was born in Dire Enchine Woreda West Shoa of Oromiya Regional State inMarch 1981. I attended my primary education at Bola elementary school. I attended my secondary school education at Gudar senior secondary school in West Shoa Zone. After completion of high school education, I was joined Jimma University Ambo Collage of Agriculture department of General Agriculture and graduated in July 2001 with diploma in Agriculture. Soon after my graduation, I was employed at Nono Woreda Agricultural office and served as expert of input supplier coordination Unit for Seven years. Simultaneously I continued my distance and continuous education program at Rift Valley University and I was graduated 2014 BA Degree in Economics. Then after the author joined the School of Graduate Studies of Wolkite University in October 2018 to pursue my MSc degree in Economics in extension program
ASSESSEMENT OF NON PERFORMING LOAN ON THE PROFITABLITY OF MICRO FINANCE INSTITUTIONS (IN CASE OF METEMEMAN IN MICRO FINANCE)
(WOLKITE UNIVERSITY, 2019-06) Solomon Gezmu, Solomon
This study would be conduct on the title of assessment of non-performing loan in micro finance institutions in metemamen micro finance. The general objective of the study is to assess factors that affect the credit management in micro finance institution of metemamen in wolkite branch. The specific objectives of the study are to analyses the assessment of non-performing loan, to assess the technique, used by institution to manage non performing loan.to analysis the main reason a loan become non performing. To assess after credit provision. In this study both primary source of data was used and the researcher would be used open end and close questionnaires and structured interview to collect data from the employee, customers and management body of the institutions and purposive method was used to collect data from employee and management body of metemamen credit and micro finance institution. And also the researcher was used descriptive method of data analyzing. The general objective of the study is to investigate factors that affect the credit management in micro finance institution of metemamen in wolkite branch. Longitudinal design is employed for a data collection and analysis purpose. The sample would be use selected by purposive sampling selection techniques. There are some problems related with collections of credit given to borrowers and any other related with it. Thus microfinance institutions and government should take a corrective measurement in order to reduce credit risk management in metemamen micro finance institutions
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.
CAUSE AND CONSEQUENCES OF YOUTH UNEMPLOYMENT; THE CASE OF WOLKITE TOWN, CENTERAL ETHIOPIA
(WOLKITE UNIVERSITY, 2023-11) Petros Niga
unemployment in Gurage Zone Wolkite Town. To answer the study objective, data were collected by a structured questionnaire from 269 respondents’ selected using simple random sampling technique and analyzed using binary logistic regression and the collected data were analyzed by statistical software packages such as STATA and Microsoft Excel. Thus, depending on the study the main cause of youth unemployment in the town are gender, age, education year, work experience, social network density, exposure to any social mass media, occupation, job opportunities and technological improvement those are significant variables and The consequences of youth unemployment in the town are alcoholism and prostitution, high crime rate, lack of peace and security, lack of self-respect, dependency, decreases in consumption and increasing poverty. Therefor the current status of youth unemployment in Wolkite town is high and it show more percepts of youths live in the town was unemployed due to different factors and it indicates there is unemployment problem in the Wolkite Town. Because of the seriousness of the problem measures like giving opportunity to self-employed activities, expanding private institutions to create job opportunities, establishing non-governmental and governmental institution should be taken to reduce unemployment in the town
CROP DIVERSIFICATION AND ITS EFFECT ON YIELD AND FARMERS RESILIENCE: EMPIRICAL EVIDENCE FROM ABESHGIE DISTRICT, IN ETHIOPIA
(WOLKITE UNIVERSITY, 2023-11) BERHANU BEKELE, BERHANU
Crop diversification, which is growing more than one crop in a plot, is one of a workable climate wise agriculture approach that boosts crop yield, which in turn helps to enhance farming system resilience for the smallholder farmers. This thesis aims to identify factors affecting the extent of crop diversification in rural farmers in Ethiopia taking Abeshgie district as a case study. It also quantified the effect crop diversification on yield and farmers resilience. Primary data was gathered using structured survey questionnaire carried out by well-trained enumerators and supervisors. Using two stage sampling design a total sample of 303 farmers were selected. Linear regression and moment based flexible models were used to analyze the data. The result suggests that, crop diversification is 0.568, which shows moderate level of crop diversification. Crop diversification extent is positively and significantly affected by credit use, access to agricultural training, mass media use, total land farmers hold, distance from the market, experience of climate change in previous years, and age of the farmers. Crop diversification increased agricultural yields by 19% and significantly cuts down on downside risk exposure and variation by 18% and 3% respectively. Since crop diversification has a significant positive effect on crop yields as well as reducing downside risks, farmers should improve and participate in their crop diversification activities. The government and other concerned body should have to provide credit service and give agricultural training to farmers in order to improve crop diversification levels and assure sustained agricultural developments.
DETERMINANTS OF DAILY LABORERS‟ SAVING BEHAVIOR IN URBAN AREA OF ETHIOPIA: THE CASE OF WOLISO TOWN, SOUTH WEST SHOA ZONE, OROMIA REGIONAL STATE, ETHIOPIA
(WOLKITE UNIVERSITY, 2020-02) MELAKU DELESSA RIKITI, MELAKU
In Ethiopia saving rate is low and the saving culture is not well developed. Moreover, there is huge resource gap indicating the dependency of the country on external resources to finance the gap over the years. Although numerous researchers have studied on the determinants of personal saving behavior among the households, no study have been conducted on the daily laborers. Hence, this study was aimed to examine the determinants of the saving behavior of the daily laborers in Woliso town. The study was used both primary and secondary data. The primary data was collected from 288 samples registered daily laborers in Woliso town by using stratified sampling method. Questionnaire and interview were used as a method of data collections. To test the consistency of the data Cronbach’s alpha test was used. Descriptive statistics and inferential methods of data analysis were employed. For Econometric Analysis Logistic Regression Model was used. The descriptive results shows that out of sampled respondents 93(32.3%) have saving practice and 195(67.7%) have no saving practice. The study found that out of saver respondents, 28(9.7%) was motivated to save to meet emergency and 0.7% motivated to obtain loan. The logit model results indicated that, monthly income, plan to save, training and financial literacy were positively and significantly affect the daily laborers saving behavior where as sex, distance to the nearest financial institutions, peer influence and marital status were significantly and negatively affects. Therefore, the study recommended that the government and concerned bodies should give capacity building training on saving awareness, create alternative income generating activities, and mobilizing so as to use formal financial institutions.
DETERMINANTS OF FOOD SECURITY IN THE RURAL HOUSEHOLDS OF SILITI WOREDA, SILITE ZONE, SNNPR, ETHIOPIA
(2019-06) MIFTA ABDELLA MUSTEFA
Household food security issues have become the concern of national governments as well as the international communities during the last few decades. Despite some improvements in recent years, poverty and food insecurity remain widespread and the main challenges in Ethiopia. The vast majority of extraordinarily poor households live in rural areas that are heavily reliant on rain fed agriculture. In Ethiopia, the Snnpr region in particular, has been prone to much suffering in the past, and was one of the hardest hit areas. An understanding of the major determinants of food security is important for interventions aiming at minimizing food insecurity. Therefore the objectives of this study were identified determinants of food security among rural households Siliti district of Silite Zone and were collected Sample from 256 households drawn from 7 randomly selected sample kebeles through interview schedule. Descriptive statistics and Econometric analysis were used. Logit model were employed of data analysis. The survey results indicate that 34.38 % of the respondents were food secure, while 65.63% were food insecure. Results also indicate that there was a significant mean difference between the food secure and food insecure households. The study reveals that reducing numbers and quantity of meals, sales of livestock, purchase food on cash, borrowing grain/ cash from others and eating less preferred food were some of frequently practiced coping mechanisms in study area. The Logit result shows that marital status household head, marital status of household head, use of chemical fertilizer, and size of cultivated land, total income of household, credit access and Social capital were found to be significant in determining household food security. Generally, the study recommends that proactive policy which facilities the family planning techniques, expansion of infrastructure services, as well as awareness creation on better utilization of credit with expansion of credit access should be integrated as food security efforts.
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
DETERMINANTS OF MULTIDIMENSIONAL FOOD INSECURITY IN ETHIOPIA
(WOLKITE UNIVERSITy, 2020-07) ABEL TENKIR DIMDE,
Food insecurity is a situation that exists when people lack secure access to sufficient amounts of safe and nutritious food for normal growth and development and an active and healthy life. Food insecurity is a global phenomenon which affects continents, nations and people differently Ethiopia, one of the least developed countries, was ranked 174th out of 188 countries by the 2017 human development report, in terms of both its per capita income and human development indices. This position of a country indicated that in Ethiopia food insecurity is an urgent and immediate challenge and will continue to be so far some time. Based on this fact the aim of this study was to assess the determinants of multidimensional food insecurity in Ethiopia so as to help proper understanding of factors associated with multidimensional food insecurity which is a key to policies and practical steps that the government can take in ordered to curb food insecurity. This study used data from Ethiopian socio economic survey of 2016 which include 22,296 households from all parts of the country. The data was analyzed by both econometric and descriptive analyses. Descriptive study shows that 27.5 percent of sample households by Ethiopian demographic and health survey of 2016 which was collected by CSA are multidimensional food insecure. The logit model of this study was demonstrated household family size, access to clean water, access to credit, household health stats, off farm activity and education are significantly affect multidimensional food insecurity. Based the result the main conclusion of the study is that the incidence of multidimensional food insecurity is widespread in Ethiopia. This problem calls urgent interventions aimed at dropping this incidence of multidimensional food insecurity. Thus multidimensional food insecurity alleviation policies that based on those variables should be key ingredients of a multidimensional food insecurity reduction strategy and the targeted groups should involve in any development efforts that could address multidimensional food insecurity in Ethiopia.
DETERMINANTS OF SCHOOL PARTICIPATION CHILD LABOUR AND ITS EFFECT ON SOCIO-ECONOMIC ACTIVITY IN GURAGE ZONE: THE CASE OF WOLKITE TOWN
(WOLKITE UNIVERSITY, 2021-08) KIBEBU HABTEGEBRIEL DERERI
Child labour participation is a global phenomenon focusses all kinds of working conditions which endanger health, education, physical and social development of child. This study investigated the determinants ofschool participation child labour and its effects on socio economic activity in the case of Wolkite town. To achieve the objectives, data were collected from 393 sample child laborer using stratified sampling with structured questioner method. Data were analyzed using descriptive statistics such as percentage, mean, standard deviation, and as econometrics method binary logistic was used. The results showed that working condition of child laborers affects students’ school attendance as they work for 11 hours. The findings of the study indicate that children parents who have enough source of income get more human needs than children’s’ parents who have no source of income. Regarding to parents life status the result has shown that childrens’ parent life status were positively effect on child labor participation. This is due the fact that children’s’ children’s’ who have no parents are enforced to work and they face a variety of socio-economic problems. Children were low source of family income, failure of interest in attending school and as result they migrate to study area to examine a job without permission of their parents. There is a need to develop and exercise policy direction in overcoming the socio-economic problems of children engaged in child labor especially for those from poor families.
DETERMINANTS OF WOMEN LABOR FORCE PARTICIPATION IN TRANSPORT SERVICES IN ETHIOPIA: CASE STUDY IN GURAGHE ZONE
(Wolkite University, 2020-06) ABDLAIZEZ SHUME
This study aimed at analyzing determinants of women’s decision to participate in transport services in Ethiopia by taking Guraghe zone as a case study. The study used both primary and secondary sources of data. The primary data was collected from 309 women by using multi-stage sampling method. Questionnaire and interview were used as a method of data collections. Descriptive statistics and inferential methods of data analysis were employed. For Econometric Analysis, Probit Regression Model was used. The descriptive analysis results show that most of the respondents are not comfortable with women decision to participate in transport service sector. Moreover, analysis result from Probit Regression Model revealed that awareness creation training, lack of access to other careers, labor protection and welfare, marital Status of the respondent, salary and compensation and knowledge about labor market are determinants of women participation in transportation service that have registered expected signs and statistically significant results. However, awareness creation training and salary and compensation are the only variables that showed positive signs where as lack of access to other careers, labor protection and welfare, marital Status of the respondent and knowledge about labor market are variables that registered the expected negative signs. Even though most of the women are not comfortable about women participation in transport service sector, the participation is still in progress and this increment maybe attributable to improving economic incentives in employment and policies favoring the employment of women. In addition, there are unequal opportunities for employment for both mean women workers in Ethiopia. Therefore, policy statements in the government’s gender specific policies should give prior attention to provide women with more opportunities so as to participate IN transportation services as well as participation in education and training.
DETERMINANTS OF WORKERS WAGE IN PRIVATE INVESTMENTS AND PERFORMANCE OF INVESTORS IN URBAN AREAS OF SOUTHERN ETHIOPIA: IN CASE OF HADIYA ZONE, HOSANNA TOWN
(WOLKITE UNIVERSITY, 2020-01) CHERNET ABEBE, CHERNET
This study aims to investigate the determinants of workers wage in private investments and performance of investors in urban areas of southern Ethiopia by taking Hadiya zone, Hosanna town as a case study. In this study both probability and non- probability sampling technique was used to select sample respondents. Hence, this study used a multi-stage sampling technique, in the first stage, Hosanna town was purposively selected. In the second stage, three investment area namely Lemmo, Sorro and Gibe wereda were selected by using stratified and simple random sampling method. Lastly, from 172 private investors was select the sample of 63 investor and 205 workers of private firms out of 554 workers. The study used both descriptive analysis and Econometric analysis of Multiple Linear regression model. The findings of the study indicate that Market opportunity out of Hosanna town, Access to infrastructure, Access to land, Access to finance and years of tax exemption from profit tax were statistically significant and had positive relation with the income of private investor. The rest of variables bureaucratic red tape were statistically significant, Problem faced which related during the production process were statistically insignificant and had negative relation with the income of private investor in the analysis. Thus, working hour of workers per day in private investments, additional income from part-time (out of wage), experience of working in private firms were statistically significant and had positive relationship with the income of worker in private investment in the analysis. The rest of two variables access to training for worker number of worker in the department was statistically significant and had negative impact on the income of worker in private investment in the analysis. In addition to this the private investment has its own positive outcome on the local economy in terms of creating employment opportunity and market stability. Thus, in order to encourage private investment, the government should introduce practical land development and administration procedure, accessing land for strengthen the performance of private investment.
DETERMINANTSOFAGRICULTURALPRODUCTIVITYAND RURALHOUSEHOLDINCOMEINETHIOPIA
(WOLKITE UNIVERSITY, 2018-06) BIRHAN GIRMA
ECONOMIC COST OF ELECTRIC POWER INTERRUPTION ON SMALL AND MEDIUM ENTERPRISES BUSINESS IN THE CASE OF HADIYA ZONE SOUTHERN ETHIOPIA
(WOLKITE UNIVERSITY, 2020-08) SOLOMON DANIEL ABIYO, SOLOMON
In most developing countries electricity supply is highly not sustainable. The primary objective of this study is to analyze the economic cost of the electric power interruption on the SME business in a case of Hadiya zone, Ethiopia. These estimates rely on a cross sectional data collected from Respondents through questioners and face-to-face interviews. Using a conditional logit and the binary logistic regression models, to be associated with consumers’ willingness to pay for improve power interruption. The study findings show that Family size and size of enterprise have no statistical significant and negative marginal effect of willingness to pay electricity improvement. In addition, Maintained cost of alternative sources, distance of manufacturing area to sale/services and satisfactions level with electricity service is insignificant effects for choosing of willingness to pay additional cost to avoid electricity interruption. also, the results reveals that power interruption variables (measured using frequency of power interruption in a per days and monthly electricity expenditure) have a positive and significant effect on the estimated willingness to pay or causes for economic costs on small and medium enterprise, but Alternative source of power supply equipment has negative and significant at 5% level of significance effects on willing to pay for improved services. One strong outcome of the study is that the power interruption in study area has imposed significant additional costs on the services/business sector in SMEs. The bulk of these additional costs relate to the enterprises’ acquisition of very expensive alternative power source to cushion them against the even larger losses arising from frequent and long power fluctuations. Therefore, the paper suggests that there is need for the Ethiopia or regional government to come up with ways of improving energy generation and supply, as well as proper maintenance of electricity infrastructure in the study area.
ECONOMIC GROWTH AND ENVIRONMENT: A CASE OF SUB-SAHARAN AFRICAN COUNTRIES USING PANEL VAR APPROACH
(WOLKITE UNIVERSITY, 2019-07) KASSAHUN TRUEHA DUMGA, KASSAHUN
Sustaining economic growth without affecting the environment has continued to be a big concern. The world is working towards sustainable development, a development that doesn’t neglect the environment, providing a need for current generation without risking the ability of the future generation. The aim of this paper was to assess the relationship between economic growth and the environment, for selected Sub-Saharan African countries. Data for the study were obtained from World Bank for ten Sub-Saharan African countries, for the last 29 years starting from 1990. EKC was used to examine the relationship between CO2 emission and economic growth, and Panel VAR was also used to see the causal relationship between economic growth, CO2 emission and other variables. Results of the study showed that the trend of CO2 emission in the region is increasing, the EKC is not achieved for Ethiopia, but for those selected SSA countries validates jointly. The co-integration result shows there is no long-run relationship between the variables. The first order lag Penal VAR model was selected and Real GDP and Gross Capital formation Granger – causes CO2 emission. The endogenous variables in the model are more explained by their previous shock than other endogenous variables. Response of CO2 emission a shock to real GDP is positive and decreasing until become stable quickly. the result of IRF shows that there is shock on the short run, for most of them it back to stable state after some while. To reduce the pollution, it requires a very careful set of policies and willingness to produce goods and services in most environmentally friendly way, government bodies and other concerned organizations should work on balancing economic growth and the environmental pollution.
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.
EFFECT OF INFRASTRUCTURE DEVELOPMENT ON RURAL POVERTY REDUCTION IN ETHIOPIA: PANEL DATA ANALYSIS
(Wolkite University, 2019-06) MESFIN NEGASH
The purpose of this study is to explore the effect of infrastructuredevelopment on rural poverty in Ethiopia. The effect of infrastructure development and rural poverty is examined by using panel data from the period 1995/96 to 2016. The data was sourced from the National Bank of Ethiopia, Central Statics Agency, and World Bank. To undertake this study, eleven regions of the country were used. The study used both descriptive statistics and econometric analyses. The descriptive statistical analysis displays the trend of infrastructure development on rural poverty reduction and the improvement of rural poverty is largely concerned with raising the quality of life of people living standards of the society. The Random effect model was used for econometrics analysis in order to show the effect of rural poverty. In analyzing the effect of infrastructure development on rural poverty in Ethiopia, the study were applied Unit root tests, and Granger causality test. Based on the findings, the study highlights major variable such as water, education,inflation and government expenditure has a significant effect on rural povertyreduction. The estimation result suggested that, an increasing infrastructure development reduces rural poverty. The causality estimation shows both electrification and road has a positive effect infrastructure development on rural poverty reduction. Furthermore, the study found unidirectional causal relationship moving from electrification and road while there is no causality between foreign direct investment, inflation, government expenditure, education and rural water with rural poverty. There is no bidirectional relation between variables. This finding is consistent with the standard economic theory. Based on the findings the study highlights major issues policymakers should give due attention towards the effective formulation and implementation of infrastructure development policies toreduce and eliminate rural poverty.
THE EFFECT OF NETWORKING ON PERFORMANCE OF MEDIUM SIZE ENTERPRISE IN ETHIOPIA
(WOLKITE UNIVERSITY, 2019-01) BELAY ASEFA, BELAY
In order to stay competitive in business and improve performance, medium size enterprise firms to understand how, when and with whom to networked to improve on their performance and increase their market share and worthiness of their firms. The general objective of this study was to evaluate the effects of networking on performance of medium size enterprise firms in Ethiopia medium size enterprise need to work in collaboration with others. It is necessary to create chain that gives value for business through networking. The purpose of this study was to test the impact of networking on the business performance of medium size enterprises in Ethiopia. The questionnaire survey method was used in this study to collect data from respondents. The data was collected from 128 samples of respondents recognized through stratified random sampling technique and the collected data was analyzed using ordered probit model: which is one of nonlinear models used for analyzing data measured on ordinal scale. This research paper identifies the relationship between enterprise and the concerned stock holder improved business networking enterprises increased their performance IN this survey study it was found that networking with financial institutions, business connection, trade linkage and quality of the relationship in network positively and significantly related with business performance of medium size enterprises. In addition to this, firm age was positively and significantly related with business performance of medium size enterprises. This was indicated with regression co-efficient of the variables the result of this study recommends the need for government and other stakeholders to improve the networking skills of medium size enterprise to significantly improve business performance
THE EFFECT OFILLEGAL FINACIAL FLOW ON ECONMIC GROWTH OF ETHIOPIA
(WOLKITE UNIVERSITY, 2020-06) BASHA BIRANU DABESA,
This study investigates the effect of illegal financial flow on economic growth of Ethiopia the period 1980/81-2017/18 using Johnson co-integration and granger causality test procedures. The study employs secondary data obtained from the Central Bank of Ethiopia, Central Statistical Agency (CSA) and International Monetary Fund (IMF). The long run estimation result revealed that illegal financial flow, population growth rate and terms of trade affect economic growth of Ethiopia negatively and significantly and consumption affects economic growth positively and significantly. Furthermore, the short run estimation results of VECM reveals that the deviation of the system in the short run from its steady state restored to its equilibrium by 14.5% in the long run per year or speed of adjustment from the shock exists toward the long run equilibrium is 14.5% annually or the dis equilibrium correct (adjust) itself by 14.5% in the short run. The Granger Causality test results show that illegal financial flow, consumption and terms of trade granger cause real GDP. However, gross capital formation and population growth rate do not cause real GDP in Ethiopia. Generally, we conclude that illegal financial flow has significant negative influence on economic growth and its trend has been increasing on average about 7.14 million USD annually, which lose to the Ethiopian economy. Based on the research findings, we recommend the following to be made such controlling and auditing mechanisms for trans-boundary trade activities, creating effective institution and building collaborative.