DETERMINANTS OF DOMESTIC PRIVATE INVESTMENT DECISION IN WOLKITE TOWN

Abstract

This research paper aims to investigate the determinants of domestic private investment decision in the wolkite town. To address these objectives, the researcher used descriptive statistics, and explanatory research design was employed and 63 respondents were selected for the study. The researcher adopted censes sampling technique. The data were collected through primary source (qualitative data approach) collected from investors. Descriptive statics results were reported using tables, figures, charts, frequency, percentage, standard deviation, mean and econometric results were analyzed by using in multiple linear regression models by using SPSS 16 software package. The main finding of this study indicates that Source and access of Finance, Administrative challenges, level of education Political stability, Bureaucratic red tap, Infrastructural factors, Marketing factors, the econometric results also show that four variables have a statistically significant and positive correlation for domestic private investment, and administrative challenge have a statistically significant and negative correlation, and infrastructural factor and level of education is statistically insignificant variable in this study. The study concludes that domestic private investor in the study area were affected by the above identified factors. The researcher recommended for all concerned bodies, to pay more attention attracting foreign investors to invest in wolkite town, solve these problems access to finance, bureaucratic red tap, market related factor and political stability risk