Department of Economics

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

Department of Economics

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End date: 2019

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Now showing 1 - 10 of 26
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    Factors Affecting The Implementation Of International Financial Reporting Standards (IFRS) And Its Benefits In The Case Of Insurance Companies In Ethiopia.
    (WOLKITE UNIVERSITY, 2019-10) Tewodros Kass
    The goals of IFRS is to develop in the public interest a single set of high quality understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. However, its implementation brings opportunities and creates challenges to the insurance companies. The main objective of this study is to assess the benefits and factors which a affect the implementation of IFRS in insurance companies of Ethiopia. The study used both primary and secondary source of data. The primary data was collected through predesigned questioners and the secondary data was collected from the insurance companies profiles , journals and other related material to the study, annual financial reports, proclamation and regulation that deal with financial reporting issues by the insurance companies that deal with financial reporting issues in Ethiopia. To answer the research questions and test the hypotheses the study adopted the quantitative research approach with descriptive and explanatory research design. The questionnaire data were analyzed using descriptive statistics, and multiple linear regressions analysis. The population of the study consisted of all insurance companies of Ethiopia. In this research select a sample of 10 insurance companies were selected using purposive sampling to investigate benefits and factors that affect the implementation, and processed using both descriptive and inferential statistics like frequencies, percentages, means and regression analysis. The result show that IFRS implementation in insurance companies of Ethiopia result in a number of important benefits to a wide range of user of financial statements. The study also found that with the exception of IFRS knowledge gap the other four variables which are shortage of qualified professionals, resistance to change, management gap, and cost significantly influence the implementation of IFRS in insurance companies of Ethiopia. Based on the finding the research attempted to recommend the following: The government and other concerned body should work on resolving knowledge gap as the factors affecting the implementation of IFRS through training and development; work on resolving management gap to implementation of IFRS in Ethiopian insurance company. Through capacity building, training and development; work on to manage or handle change resistance to implementation IFRS in insurance company of Ethiopia through awareness creation and development; work .on the establishment of institute which supports the implementation of IFRS in insurance Ethiopia.
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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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    Private Commercial Banks and Economic Growth in Ethiopia: Panel Data Analysis
    (WOLKITE UNIVERSITY, 2019-01) Dereje Diriba
    The purpose this study is to investigate the role of private commercial banks on economic growth in Ethiopia, and their direction of causality for a period of 10 years from 2008-2017. The data was sourced from the National Bank of Ethiopia, Ministry of Finance and Economic Cooperation-MoFEC, Central Statistics Agency (CSA). To undertake this study, eight private commercial banks were purposively selected out of sixteen which currently operating in Ethiopian banking industry. In analyzing the relationship between private commercial banks and economic growth the study applied Unit root tests, Kao Residual co-integration test, and Granger causality test. Moreover, the study used both descriptive statistics and econometric analyses. The Random effect model was used for econometrics analysis. The study found that a positive and significant relationship among profits, loan and advance and labor force with economic growth whereas there is negative and a significant relationship between branch network and economic growth. Furthermore, the study found unidirectional causal relationship moving from loan and advance, and profit to economic growth while there is no causality between asset, deposit and RGDP. There is a bidirectional between branch network and economic growth. Finally, the policy makers and stakeholders should make policies to enhance the banking sector in Ethiopia because profits, loan and advances are significantly contributing in the economic growth of Ethiopia.
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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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    The Impact of Perceived Organizational Injustice on Employees Turnover Intentions In Guraghe zone public service sector
    (WOLKITE UNIVERSITY, 2018-06) Siyoum Amiga
    The purpose of this study was to investigate the impact of perceived organizational injustice on employee’s turnover intention in Guraghe zone public service sectors. The population under study was all employees in Guraghe zone public service sectors. Using proportionate stratified random sampling based on the size of statistical community, 281administrative employees were participated in the study. The study had a descriptive and causal research design and the required data were collected by using the validated form of organizational justice questionnaire containing 22 questions and validated form of turnover intention questionnaire, containing 3 questions. The reliability was estimated using Cronbach's alpha coefficient for distributive, procedural and interactional justice respectively were, 0.93, 0.69 and 0.80 and 0.92 for turnover intention. The obtained data were analyzed using frequencies, mean, and linear regressions.Result indicates that the level of employee’s perception of organizational justice is below average, whereas their intention to leave their organization is high. The result of mean of perceived organizational justice and turnover intention showed that employee’s level of turnover intention is high. This high level in turnover intentions indicates that majority of employees have perceived low level of organizational justice, which means the employees are not satisfied with the outcome that they receive, with the procedures by which they acquire outcomes and with interpersonal treatment as well as the quality of information that they receive about the outcomes. The results of linear regression showed that the best predictor of turnover intention was distributive injustice. Based on findings, the researcher recommended the management of Guraghe zone public service sectors to take actions that rise justice perception and decrease turnover intentions.
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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