Determinants of Domestic Private Investment Performance in Gurage Zone

Abstract

This study mainly focused on the determinants of domestic private investment performance in Gurage Zone. It describes the trend of domestic private investment activity and the determinant factors that influence domestic private investment performance in Gurage zone. The study employed a Multiple Linear Regression Model was used. This helps in testing the influence of the explanatory variables on the dependent variable. The regression results show that access to infrastructure, feasibility study or feasible project ideas, and promotional services have a significant positive effect on the performance of private investment, whereas corruption and bureaucratic red tape have significant and negative effects on private investment. Hence, the researcher recommended that. The government should come up with a plan to solve various infrastructure problems such as roads, water, and electricity to increase the investment potential of the zone. Because the finding of this study indicates that access to infrastructure has a positive and significant effect on investment performance. This means that most of the private investments are influenced in their progress of investment by a lack of efficient infrastructure facilities. Also, by using various media, to make investors come to the zone and the investment office to create effective investment opportunities for the investor by doing timely and up to date feasibility study or feasible project ideas by skilled professionals. Reduce the bureaucratic procedure to ensure that investment requests are answered in a very short period and to make the process of issuing the license consistent and clear. This could be done by minimizing unnecessary time taking, delay and ensuring transparent investment regulations. Thus, the Gurage zone concerned bodies must attract and encourage private investors by applying and improving policies that promote private investment