Linkages Between Financial Market Development and Economic Growth in Ethiopia

In this study we consider the link between financial development and economic growth from 1971 to 2009 in Ethiopia. Most theoretical and empirical works in the literature suggest that deeper financial market promotes economic growth. We take this hypothesis to the test of conducting descriptive and empirical study using Ethiopia’s data. In the empirical analysis we estimate an investment equation applying the Stock Watson Dynamic OLS procedure. The result suggests that the financial development indicator positively and significantly explains investment suggesting that financial development and economic growth have direct and strong relationship. The argument that financial development and economic growth have positive linkages is supported by results of both descriptive and empirical analysis. But the argument that financial development determines economic growth appears to be inconclusive. The Granger causality test result suggests bidirectional influence between financial development and economic growth. Keywords: Financial,Market,Development,Growth DOI: 10.7176/JEP/10-22-01 Publication date: August 31st 201

Assessment Practices in the Center for Regional and Local Development Studies, College of Development Studies in Addis Ababa University, Ethiopia

This research investigates instructor’s assessment practices in the center for RLDS, college of development studies in Addis Ababa University. The samples used for the study consisted of 5 teaching staff (those who thought first and the second year students in 2018/19 academic year), and 17 students from both academic years are randomly selected. In addition, the student’s evaluation results of 4 courses, 2 instructors and 6 students randomly selected for document review and interview respectively. The instrument used for this study were closed ended and open ended questionnaires, an interview and document analysis. The data were analyzed using simple descriptive statistics like percentage and mode as well as the mean scores. The paper tries to give the general over view of how instructors evaluate their student’s academic performance, the criterion and guidelines they used to select a given assessment methods, the effectiveness of their assessment practices to measure the three domains of learning of their students and the assessment methods the instructors in the center used frequently as well as which of these method the students more prefer. The major findings of the study is that, in the center for RLDS, the assessment practice is of summative paper-pencil based used only for grading not for students learning, even though some instructors used course objective as their criteria, there is no general assessment guidelines and criterion used by instructors to select a given assessment method, mark and grading, and the instructors do so arbitrarily and very differently. The frequently used assessment method is assignment and final exam that given for students at the end of the courses while the students prefer assignment, mid exams and final exam that given at different times during their learning. The paper also finds out that there is significant variation among instructors depending on their service year and academic rank in using assignment and final exams. Thus, as the academic rank and service year increases the inclination of instructors to use one or two assessment at the end of the course increases. Finally the study discovered that most students distrust their instructors during evaluation due to the lack of responsibility and accountability on the parts of instructors on marking, grading and letting students to check their results. Keywords: Assessment, practice, evaluation, RLDS DOI: 10.7176/JEP/10-4-0

The Effects of Intergovernmental Grants in Ethiopia: International Lessons

Intergovernmental grants are an important feature of federal systems of governments in many countries. Grants from one level of government to another have been primarily used as a way of addressing the vertical fiscal imbalance that is often created in a federation. In the presence of disparate taxing capacity of regions, designing a good intergovernmental grant system that is acceptable by all regions is usually challenging. Yet the success of fiscal federalism greatly depends on how the federal government addresses the fiscal needs of regional governments through intergovernmental transfers. What lessons can relatively young federal countries like Ethiopia draw from the experiences of other countries? We examine various kinds of grants and their potential effects on the recipient regional government spending and economic growth. We also explore how federal transfers might affect the fiscal behaviour of regional governments and the welfare of the residents of recipient regions. We look at these important issues from both theoretical and practical perspectives focusing on the applicability of the international lessons to Ethiopia. Keywords: Grant, Intergovernmental, lesson, International DOI: 10.7176/PPAR/10-10-03 Publication date:October 31st 202

Linkages Between Financial Market Development and Economic Growth in Ethiopia

In this study we consider the link between financial development and economic growth from 1971 to 2009 in Ethiopia. Most theoretical and empirical works in the literature suggest that deeper financial market promotes economic growth. We take this hypothesis to the test of conducting descriptive and empirical study using Ethiopia’s data. In the empirical analysis we estimate an investment equation applying the Stock Watson Dynamic OLS procedure. The result suggests that the financial development indicator positively and significantly explains investment suggesting that financial development and economic growth have direct and strong relationship. The argument that financial development and economic growth have positive linkages is supported by results of both descriptive and empirical analysis. But the argument that financial development determines economic growth appears to be inconclusive. The Granger causality test result suggests bidirectional influence between financial development and economic growth. Keywords: Likage,financial,Management,Economic growth DOI: 10.7176/RJFA/10-15-03 Publication date: August 31st 201

The Effect of Electric Blackout on the Operation and Productivity of Small Manufacturing Enterprises

The contribution of electricity to improve the productivity and efficiency of small enterprises is indispensable. The general objective of the research is to understand the effect of electric blackout on the operation and productivity of some selected small manufacturing enterprises in District 12, Nifas Silk Lafto Sub-city of Addis Ababa. Small enterprises experience frequent and unannounced electric blackouts. Frequent and unannounced electric blackouts affect small enterprises` ability to meet contract deadlines. The cost of a power outage which lasts for three hours and above is higher than for a power outage which lasts for less than three hours. However, a blackout which stays even for a shorter time has a huge impact on the small enterprises overall activity, employees work motivation and productivity. To reduce the electric blackout that occurs too frequently, the government has to improve the reliability of the electric supply by reducing technical faults in the transmission and distribution of the infrastructure as well as increasing the electricity generating capacity of the power station. Keywords: Electric,Blackout,SMEs,Productivity,Operation DOI: 10.7176/JETP/9-6-01 Publication date: August 31st 201

Nexus between Ethnic Federalism and Creating National Identity Vis-À-Vis Nation Building in Contemporary Ethiopia

The current regime of Ethiopia (EPRDF) implemented ethnic federalism and reshaped the state along ethnic lines as soon as it assumes political power in 1991. As an exception to the general pattern in Africa the Ethiopian government, though not explicitly, encourages political parties to organize beside ethnic lines, and champions an ethicized federal state with a secession option, it is a worthy case study. This desk study, used secondary sources of data got from numerous literatures, aims to identify the nexus between ethnic federalism in creating national identity in relation with nation building. Although the Constitution embodies a doctrine of balance between unity and diversity to build one economic and political community by rectifying” past injustices”, politicization of ethnicity under the context of ethnic federalism has encouraged ethnic cleavages by forming distinctiveness and differences which is a backlash against nation building and shared aspirations. Therefore, there is the need for visionary thinking outside the box of past injustices so that the antithesis for these injustices is not taken too far to the extent of derailing shared identity and shared aspirations. Ethnic Federalism may lead the country into never-ending ethnic wars and eventually to disintegration. Thus, ethnic conflicts prevailing in Ethiopia may be caused by such technicality problems and the ethnic federal arrangement in Ethiopia needs an urgent reconsideration before the case moves to the worst scenario

Evaluating the Challenges of IGAD-Led Peace Process of South Sudan

The purpose of study is to evaluate the challenges of IGAD-led peace process of South Sudan. Its objective is to evaluate and assess the challenges surrounding the South Sudan peace process mediated by the IGAD-led team. To address these objectives, the researcher employed qualitative research design to make use of its advantage in gaining detailed information about the issue, to examine reflections, understandings and knowledge of negotiators and refugees by offering an in-depth understanding of a particular problem and challenges. South Sudan became an independent state from the Sudan in July 9, 2011, following an internationally monitored referendum, which was held on 9 January. However, almost after three years of independence, the world newest state backslide into the horrific civil war on 15, December 2013, due to the power rivalry within SPLM/A. The war resulted in the massive loss of human life and property destruction. Consequently, the regional organization, IGAD swiftly launched the peace process on Saturday 4th January 2014, in order to halt the crisis in South Sudan. Nevertheless, the peace process faced enormous internal and external challenges during the peace talk and also at present the Joint Monitoring and Evolution Commission (JMEC) is facing impediment in the implementation process. Based on the findings of this study, the researcher recommends the concerned bodies such as the IGAD, AU, IGAD-Plus and UN should exert pressure on both warring parties so as to speed up the implementation process of Peace Agreement because the South Sudanese are suffering by intense security problems and food crisis associated with the conflict up until now. Besides, the international community should keep out, those who are uncompromising and create impediment to the implementation of the peace accord, from the rank of Transitional Government of National Unity (TGONU). Because the evidences indicate that both belligerent parties leaders are not portrayed their political will and good faith to implement the Peace Concord. Keywords: Conflict, Challenges, Conflict Resolution, Peace, Peace-building, South Sudan DOI: 10.7176/IAGS/78-01 Publication date: December 31st 201