Department of Economics

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

Department of Economics

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Start date: 2020Subject: search.filters.subject.Ethiopia

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    EFFECTS OF INTEREST FREE BANKING ON THE DEPOSIT MOBILIZATION OF COMMERCIAL BANKS IN ETHIOPIA CASE STUDY: - OF SELECTED COMMERCIAL BANKS
    (WOLKITE UNIVERSITY, 2021-07) TALEMA KEBERE ABATE, TALEMA
    The study was attempted to investigate the effect of interest free banking on the deposit mobilization of commercial banks in Ethiopian using secondary data. The data were obtained from audited financial statements of eight sampled commercial banks for the period of 2016 to 2019 and National bank of Ethiopia report. The novel features of the study was the analysis of interest free banking which was missed by other researcher; branch networking, nominal GDP, inflation rate, money supply as explanatory variables. The study used banks deposit as dependent variable. Both descriptive statistics and econometrics model specifically fixed effects estimation were used to analyze the relationships of dependent variable with explanatory variables. Different diagnostic tests namely test for zero mean of error terms, homoscedasticity, no autocorrelation; no multicollinearity and normality were conducted to check the appropriateness of the model. The diagnostic results show that none of the classical linear regression model assumption is violated. The Fixed-effect model results show that interest free banking and branch networking were strongly positive and significantly related to bank’s industry deposit performance, while inflation rate has a negative impact on deposits of bank specific drivers. Therefore, in order to aid the progress of Islamic banking in Ethiopia and reap the most benefit for the country, a legislative framework should be instituted to improve the segment’s regulation and commercial banks should open more branches in order to increase their deposit. The government also should keep the inflation rate single by decreasing money supply in the economy.
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    ENERGY EFFICIENCY AND ECONOMIC GROWTH IN ETHIOPIA TIME SERIES ANALYSIS
    (WOLKITE UNIVERSITY, 2020-08) DESALEGN DEBEBE SORATO, DESALEGN
    We have limited studies on the relationship between energy efficiency and economic growth in the context of sub Saharan Africa where efficient energy supply is limited although energy is vital to meet sustainable development goals. Considering this, this study investigates the long run relationship between energy efficiency and the economic growth in Ethiopia for the period 1974/75 to 2017/18. Multivariate time series analysis was employed. The result indicated that the existence of unidirectional causality running from economic growth to energy efficiency. Similarly, for the sectoral share of GDP, the unidirectional causality runs from energy efficiency to industry share while as bidirectional causality runs from service shares to energy efficiency and vice versa. The speed of adjustment coefficient indicates that the previous period disequilibrium adjusts to equilibrium at the rate of 59.2% annually. Impulse response function specifies responsiveness of the energy efficiency in the model to the shocks in the error term indicated that economic growth has significant influence while variance decomposition measured the strength of causality relationship showed high causal effect to energy efficiency. The overall result showed that increased economic growth has a strong cause of energy efficiency in Ethiopia. The government needs to give more importance to sustain economic growth so that both the wellbeing and the energy efficiency of the nation are improved.