Perception of Poverty by Ethiopian Rural Households: Using a Self Reported approach

Recent quantitative studies on Ethiopia’s rural households’ poverty of the last decade indicated that poverty head count has reduced. Nevertheless, most qualitative studies witnessed the contrary to quantitative studies. This study assesses how the Ethiopian rural households perceive poverty using self reported data from the Ethiopian Rural Household Survey (ERHS). Moreover, it has examined whether poverty is actually reducing as claimed by official government reports. Our findings come up with mixed results. Majority of the respondents reported that health care, family housing, and credits have been improving compared to the last decade. Nevertheless, perceptions related to food consumption and comparisons of wealth rankings relative to their fathers’ tend to show that the situation is worse though the sample size may not be sufficient to generalize about the whole country

Modeling the Determinats of Domestic Private Investments in Ethiopia

The study examined the determinants of domestic private investment in Ethiopia using a time series data over the period 1992-2010. The study employed an Autoregressive Distributed Lag (ARDL) model and applied the bounds test approach in modeling the long run determinants of domestic private investment. The study found exchange rate, domestic saving and domestic credit as key factors having negative and significant impact on domestic private investment. External debt and government expenditure are found to have significant and positive effect on domestic private investment. The results imply that government expenditure stimulates domestic private investment while domestic credit and domestic saving have a constrained effect on the sector