SOCIO ECONOMIC FACTORS AFFECTING THE GROWTH OF URBAN PRIVATE INVESTMENT IN THE CASE OF WOLKITE TOWN

Abstract

In Ethiopia, regional distribution of investment is totally unbalanced despite the clearly stated objectives of the government to remove regional imbalance in the economic growth. Like other regions, investment productivity in SNNP region, specifically wolkite town is underutilized in spite of the license given for investor’s .Therefore this study is attempted to identify the major socio-economic problem affecting the growth of urban private investment in the wolkite town. In general the implication of this study is that private investment in the wolkite town and the problems that associated with its activities and their possible solutions by analyzing the data obtained from both primary and secondary sources regarding to this zone through descriptive method of data analysis. Econometric methods of data analysis involving linear regression model were used to analyze the socio economic problem affecting the growth of private investment in wolkite town. The major socio-economic problem of private investors in wolkite town were access to infrastructure, land size, level of education, source of investment fund, access to inadequate credit and source of raw material. Thus, the government has to take measures to promote private investment at national as well as at regional levels. This could be done by establishing a true, independent and efficient institution so as to create access to credit, access to land and provide infrastructure facilities to the private sector. This would help in creating conducive investment policies and promote the private sector in the development Activities.