College of Bussines and Economics
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College of Bussines and Economics
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Item THE ECONOMIC IMPACT OF URBAN YOUTH UNEMPLOYMENT THE CASE OF WOLKITE TOWN, CENTERAL ETHIOPIA(Wolkite University, 2023) WONDIMU BERHANUThe 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 .Item SCHOOL OF GRADUATE STUDIES MARKET CHAIN ANALYSIS OF RED PEPPER(Wolkite University, 2023-01-30) WALIE YIGZAWThe 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 recommendedItem ECONOMICEFFICIENCY OF URBAN DAIRY FARMING IN WOLISO TOWN; OROMIA, ETHIOPIA(Wolkite University, 2023-01-30) SENAIT TEKAThe 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.Item DETERMINANTS OF HOUSEHOLD PARTICIPATION IN URBAN AGRICULTURE: THE CASE OF GURAGE ZONE, ETHIOPIA(Wolkite University, 2023-01-30) ALEMU LEMMAUrban 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 areaItem THE EFFECT OF ELECTRONIC BANKING ON FINANCIAL PERFORMANCE EVIDENCE FROM SELECTED COMMERCIAL BANKS IN ETHIOPIA(WOLKITE UNIVERSITY, 2024-06) TESHOME BEKELE MEREZUThis paper investigates the effect of electronic banking on the financial performance of commercial banks in Ethiopia. The study aims to analyze how the adoption of electronic banking channels, including Automated Teller Machines (ATM), Point of Sale (POS) terminals, mobile banking, and Internet banking, influences banks' profitability and return on equity (ROE). Panel data regression models with a period ofeight years, from 2015 to 2023 were employed to examine the relationship between electronicbanking transaction volumes and financial performance indicators, controlling for bank size. The findings reveal significant associations between certain electronic banking channels and financial performance metrics. Specifically, higher transaction volumes through ATM channels are positivelycorrelated with both return on assets (ROA) and ROE. Conversely, increased usage of POS terminals exhibits a negative impact on ROA, suggesting potential challenges associated with POS transactions. Mobile banking and Internet banking transaction volumes demonstrate positive relationships with ROE, underscoring the importance of these channels in enhancing banks' profitability and shareholder value. Furthermore, the study identifies bank size as a significant determinant of financial performance, with larger banks exhibiting higher profitability. Based on these findings, recommendations are provided for Ethiopian banks to strategically leverage electronic banking channels to improve their financial performance. These recommendations include investing in technological infrastructure, enhancing cybersecurity measures, and tailoring electronic banking services to meet the diverse needs of customers. Overall, this study contributes to the growing body of literature on electronic banking and provides valuable insights for policymakers, bank executives, and researchers interested in the Ethiopian banking sector.Item DETERMINANTS OF FINANCIAL REPORTING QUALITY IN CASE OF INSURANCE COMPANY IN THIOPIA(WOLKITE UNIVERSITY, 2024-05) SEYOUM YILMAThis study intends to assess the determinants of financial reporting quality in case of insurance company in Ethiopia over a period of 2014-2022. Consequently, the study used document review of insurances’ audited financial statements. The explanatory variables used in this study were Leverage (LE), Profitability (ROA), Liquidity (LQ), Auditor Change(AC), Firm Age (FA) and Firm Size(FS).In this study sixteen Insurance companies were selected from a total population of sixteen insurances companies to accomplish a study for the period of nine years (2014-2022) with the total of 144 observations. Moreover, The secondary data were analyzed using descriptive statistics, correlation analysis and panel data analysis and data from document reviews were interpreted quantitatively. The study used panel data and random regression model to analyze the Determinants of Financial Reporting quality of Ethiopian insurance companies. The study found that profitability ratio has positive and insignificant effect on financial reporting quality. While, auditor changes and firm ages had significant effect on financial reporting quality, leverage and liquidity were found to be insignificant effect on financial reporting quality of Ethiopian insurance companies.Item THE EFFECT OF FINANCIAL INNOVATION ON PROFITABLITY OF ETHIOPIAN COMMERCIAL BANKS(WOLKITE UNIVERSITY, 2024-05) SELAM TADEMUFinancial innovation is considered to be a critical requirement for the growth and profitability of organizations. It enhances technological provisions, product constituents, integrated software and consumer friendly as well as incorporating additional1useful features. The aim of this study was to examine the effect of financial innovations on profitability of commercial banks in Ethiopia. The researcher used exploratory research design and quantitative research approach was used. The independent variables were mobile banking user, internet banking user, agent banking, ATM machine, pos machine and dependent variable was profitability. Beside these, in the study firm size and bank age were used as control variables. The study uses only secondary source of data. The pooled regression model was used to analyze the relationship between financial innovation and profitability. Agent banking; age of the firm and bank size has positive and significant effect on return on equity while, ATM and posm has negative statistically significant effect on ROE. Only mobile banking has positive and significant effect on ROA while other has negative and significant effect on ROA except mobile banking. Moreover, pos and mobile banking has positive and significant effect on profitability that were measured in NIM while the remaining other variables has negative and significant effect on profitability (NIM). From the study, it can be concluded that investment and asset in pos machine terminal has negative and statistically significant impact on ROE and ROA. The asset of pos machine terminal has positive and significant impact on net interest margin. The asset of mobile banking increase profitability (NIM). From the findings it can be conclude that, the investment on internet banking has Positive effect on banks performance that was measured by ROE. The greater investment on ATMs deployment has negative effect on banks profitability and investment on deploying ATMS lead to increase banks performanceItem FACTORS AFFECTING THE QUALITY OF EXTERNAL AUDIT SERVICE: EVIDENCE FROM PRIVATE AUDIT FIRMS OF ETHIOPIA(WOLKITE UNIVERSITY, 2024-04) SEADA MOHAMMEDThis research delves into the determinants influencing external audit quality in Ethiopian private audit firms, concentrating on five pivotal dimensions of auditors' professional ethics :independence, competence, objectivity, integrity, and confidentiality of information. The study ,encompassing 120 private audit firms, adopts a mixed research methodology and employs ordinal logistic regression to analyze the intricate relationships between these ethical dimensions and the perceived Quality The researcher was employed a quantitative research method which allows gathering numerical data, measuring variables, predicting and using statistical procedures. To determine the relationship among the variables and to test the research hypothesis correlation and regression analysis method was used by meeting the ordinary least square (OLS) assumptions of the linear regression. The correlation analysis revealed significant positive associations between auditor competence, integrity, objectivity, confidentiality of information, and the overall external audit quality. The model's robust fit, within 88.4% explanation of variability in external audit quality, underscored the effectiveness of the selected determinants in predicting audit outcomes. Multiple linear regression analysis identifies competence and integrity as substantial predictors of external audit quality, supported by robust methodology as indicated by high R-square values and adherence to assumptions. In conclusion, this research highlights the crucial roles of auditor competence and integrity in external audit quality in Ethiopian private audit firms. While auditor independence showed no significant correlation, the study emphasizes context-specific factors. It offers valuable insights and practical recommendations for improving audit practices. Implementing these can enhance audit quality and the integrity of the profession in Ethiopia. The study recommended targeted improvements in auditor competence and integrity to enhance overall external audit quality in Ethiopia. Acknowledging limitations such as a focused scope and methodological constraints,6the research underscores the need for cautious interpretation of results while offering valuable sights for the improvement of auditing practices in the Ethiopian private sector. Keywords :Audit, Quality, Factor, Private firmsItem IMPACT OF SMALL SCALE IRRIGATION ON HOUSEHOLD INCOME: IN CASE OF MESKAN WOREDA, CENTRAL ETHIOPIA(WOLKITE UNIVERSITY, 2023-11) REDWAN MUNA KEMALThis 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.Item DETERMINANTS OF BANKS’ LIQUIDITY ON SELECTED COMMERCIAL BANKS IN ETHIOPIA(WOLKITE UNIVERSITY, 2024-05) GEREMEW TSEGAYE ADELAIn banking sector, liquidity has one of the major concerns for both public and privatecommercial banks. Therefore, achieving the maximum level of liquidity is considered as the ultimate goal of most CBs. The main objective of this study was to examine determinants of banks’ liquidity on selected commercial banks in Ethiopia. The study adopted descriptive andexplanatory research design with quantitative approach. The study used non - probability sampling method – purposive to select the CBE and five private banks with at least twenty five years of establishment. Data source was secondary balanced panel data of the CBE and the five private commercial banks in the period of 2011 to 2022 which was obtained from NBE. Descriptive statistics, Pearson correlation coefficient and multiple linear regression model were employed to analyze the quantitative data using E – view 9. The findings of the study revealed that ROA, GDP, INF, and RR have significant and positive effect on liquidity of both public and private CBs, whereas BS, LG, and NPL have significant and negative effect, however, AQ has no significant effect. In this regard, 74.16% of the variations in the liquidity of the banks were jointly accounted by the eight variables at 5% level of precision. Therefore, those significant determinant factors are crucial to maintain the optimal level of liquidity of the banks. Therefore, it is recommended that commercial banks in Ethiopia are better not only be concerned about internal structures, policies and procedures, but also on both the internal environment and the macroeconomic environment together along with the industry factors while developing their strategies to efficiently manage their liquidity position.