Department of Economics

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

Department of Economics

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Start date: 2020End date: 2023

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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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    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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    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
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    THE HOUSEHOLD LEVEL ECONOMIC IMPACTS OF INTERNAL DISPLACEMENT: IN CASE OF SNNPR GURAGE ZONE MESKAN AND MAREKO DISTRICTS
    (WOLKITE UNIVERSITY, 2021-08) NURADIS NESRU MUZEMIL, NURADIS
    This study investigates the ex-post impact of internal displacement on household economy in case of SNNPR Guraghe Zone Meskan and Mareko districts. Moreover the study has assessed the economic performance of displaced household due to displacement phenomenon. For quantitative analysis both displaced and host community respondents were drawn and cross sectional survey data were collected from 613 households in study area. Propensity score matching method was employed to analyze the impact of the internal displacement. This method was checked for covariate balancing with a standardized bias, t-ratio, and joint significance level tests. Furthermore, sensitivity analysis of the estimated displacement effect to unobserved selection bias was checked using the Rosenbaum bounds and Mentel-henzel procedure and estimate spillover effect. The Results revealed that displacement phenomena are a significant negative impact on displaced household and spillover effect on host community economic performance. The findings indicates that 74.63 percent negative impact of annual income of internally displaced household is seen at a 5 percent significance level. Similarly, for other outcome variable such as household consumption, wage, production, access to education, and access to health care are negative and unemployment are positive and significant effects. The sensitivity analysis also shows that the impact result estimates are insensitive to unobserved selection bias. Finally the study recommends, government to create urgent cure to return the displaced household into the community of origin and to compensate for destruct property specially the cost of basic needs and government to create work opportunity to displaced household with in displaced area as well as return area are possible resolution.
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    SOCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN ETHIOPIA
    (WOLKITE UNIVERSITY, 2020-01) MITIKU RIKITA REGESSA, MITIKU
    This study examines the causal relationship between social development and economic growth in Ethiopia using time series data over the period 1974/75 to 2017/2018. The study adopted modern time series econometric techniques such as unit root test, lag selection criteria, Johansen co integration test, VECM, and granger causality, Wald test, impulse test, and variance decomposition. In the descriptive part of the analysis the study found that both the Dergue and EPRDF social development has been growing throughout the years under consideration. The found that in the long run, education expenditure, health expenditure, culture expenditure, social welfare expenditure, labor force and trade openness have positive and significant effect on economic growth in Ethiopia. In the long run social development has positive significant effect on economic growth in Ethiopia. In the short run, the empirical revels that one year lagged value of Labor force and Social Welfare is significant in affecting current growth in real GDP. The short run speed of adjustment coefficient of 0.5445 indicates that 54.45% of the short run adjustment made within a year. Empirical findings shows in both long run and short run, there is no causality running from either economic growth to social development or social development to economic growth in Ethiopia. Looking at the causality between components of SDU and Economic growth; there is no short run causality running from LNRGDP to LNHEAL, LNEDUC, and LNCULTU; vice versa is not true. Whereas there is a unidirectional causality running from LNWELFS to LNRGDP and vise verse is not true. In the long run, there is unidirectional causality running from LNRGDP to LNCULT, LNHEAL, and LNWELFS. The impulse analysis shows that expenditure on health and education has permanent effect on economic growth in Ethiopia in the ten years. The results of the variance decomposition indicate that a greater proportion of the variation in LNRGDP is due to its own innovations. Finally, the researcher recommend that government should improve the education quality, health of societies, encouragement of social welfare, credibility of societies culture, and encouragement of trade openness, and yet investment on social sector development does not reach to the poor section of the people , and government should re-examine its social development strategy.
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    THE RELATIONSHIP BETWEEN AIR TRANSPORT EXPENDITURE AND ECONOMIC GROWTH IN ETHIOPIA
    (WOLKITE UNIVERSITY, 2020-08) MISGANA KEBEDE, MISGANA
    This study investigates the relationship between air transport expenditure and economic growth in Ethiopia. It uses annual time series data, obtained from the national bank of Ethiopia, World Bank, MoFEC and annual report of the Ethiopian airlines Enterprise, which covers from the year 1986/87 to 2018/19. The study employs Auto Regressive distributive lag model (ARDLM) bond test to estimate the long run and short run parameters. The results show that in the long run domestic air transport expenditure ,expenditure on agriculture ,on culture& sport ,net capital formation and labor force are significantly and positively impact on economic growth in Ethiopia .While military expenditure and trade openness are a significantly and negatively affect economic growth in long run. On the other hand the result from error correction model (ECM) revealed that government expenditure on agriculture and labour force have significantly and positively affect economic growth whereas one lagged military expenditure and trade openness are significantly and negatively affect economic growth in short run. But air transport expenditure, expenditure on culture &sport and capital formation (investment) have weak/no significant effect on economic growth in short run.