Department of Economics

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

Department of Economics

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Start date: 2018End date: 2019

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Now showing 1 - 10 of 22
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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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    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
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    DETERMINANTSOFAGRICULTURALPRODUCTIVITYAND RURALHOUSEHOLDINCOMEINETHIOPIA
    (WOLKITE UNIVERSITY, 2018-06) BIRHAN GIRMA
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    Impact of Road Infrastructure Development for Economic Growth in Ethiopia
    (WOLKITE UNIVERSITY, 2019-01) Bahirnesh Assefa
    This paper examined impact of road infrastructure development on economic growth in Ethiopia. The general specification of the model is an augmented Solow Growth model. Such a model is basically a VAR. The logarithmic form of this production function of Solow growth model allows including road network and good values of export or import in national currency per total road length variables which impact for growth of GDP. Vector auto regressive model (VAR) use analyzes the secondary data for the long run relationship between road infrastructure development and economic growth in Ethiopia. The study is making use of time series data for the period 1975 to 2017. The data used is from secondary data sources such as central statistics agency, World Bank, IMF, MOFED, and African Development Bank (ADB). The objective of the study is the impact of the road infrastructure development for economic in Ethiopia. The result shows that road infrastructure development for asphalt road, gravel road, road density per 1000 km2 and export of goods values per total road length in national currency have a positive impact with economic growth in the long run. And also in the same result that total road length per 1000 persons (labour force) and importing goods values per total road length in national currency shows a negative impact on economic growth in the long run. Based on the findings, it was suggested that the government should come up with sustainable and implementable road infrastructure development for economic growth. Maintenance Road Sector Development Program (RSDP) that will ensure good access road network in Ethiopia. Also, economic growth in Ethiopia depended on the level of good and accessible road network is increasing transportation and facilitates for exporting goods (economic activity)
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    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
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    TAX REVENUE AND ECONOMIC GROWTH IN ETHIOPIA: A PANEL DATA APPROACH
    (WOLKITE UNIVERSITY, 2019-01) MULUGETA ENDALE, MULUGETA
    This study examines tax revenue and economic growth in some selected regional state of Ethiopia using annual panel data. Theoretically and empirically, it has been showed that taxes affect the allocation of resources. The main purpose of this study was to reveal the relationship between tax revenue and economic growth for the regional state of Ethiopia during the period 2005-2017. While, analyzing the effect of tax revenue on economic growth, the study applied panel long run and short run relationship between tax revenue and economic growth. The study applied fixed and random effect model, Johansen’s co integration test, VECM, and Granger causality test. The tax revenue with its component though affects economic growth significantly. The causal relationship with economic growth in the long run is not significant as expected. This implies there is independence between tax revenue and economic growth. In the short run the finding shows that there is no jointly causality between tax revenue and economic growth. Furthermore, the speed of adjustment is slow; however, to improve the speed of adjustment needs more controlling and monitoring system should be applied. The findings of the study major issues should the policymakers consider for effective taxation policy formulation and implementation of the economy.
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    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.
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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.