Impacts of Private and Public Physical Capital Accumulation on Economic Growth of Ethiopia

The main objective of this research was to examine the impacts of private and public physical capital accumulations on economic growth in Ethiopia for the period ranging from 1974/75- 2017/18 by using Auto Regressive Distributed Lag (ARDL) Approach to Co-integration and Vector Error Correction Model. The result showed that real private capital accumulation had statistically insignificant impact while public capital accumulation had negative and statistically significant impact on economic growth of Ethiopia in the long -run. The result also revealed that human capital and labor force had positive and statistically significant impact while trade openness, macroeconomic instability and foreign aid had negative and statistically significant impact in determining economic growth of Ethiopia in the long- run. In addition, in the short -run private and public capital stocks had negative and statistically significant impact on economic growth of Ethiopia at first lag while human capital, labor force, trade openness, macroeconomic instability and foreign aid had positive and significant impact on economic growth of Ethiopia with lag. Overall, the policy implication of this study is that, given the long -run insignificant impact of private capital and negative significant impact of public capital stocks on economic growth, it is recommendable to reduce public capital investment in different sector investments rather better to encourage private sector participation on economic activities in Ethiopia

Factors Affecting Profitability of Insurance Companies in Ethiopia: Panel Evidence

Profitability is one of the most important objectives of financial management because one goal of financial management is to maximize the owner` s wealth. This paper examined the effects of firm specific factors (age of company, size of company, leverage ratio, premium growth rate liquidity ratio and tangibility of assets) on profitability proxied by ROA. Profitability is dependent variable while age of company, size of company, premium growth rate,leverage liquidity ratio and tangibility of assets) are independent variables. The sample in this study includes nine of the listed insurance companies for twelve years (2005-2016). Secondary data obtained from the financial statements (Balance sheet and Profit/Loss account) of insurance companies, financial publications of NBE are analyzed.Panel data analyzed using Random Effect Model (FEM) after testing the appropriateness of the model with Fixed Effect and Pooled regression model. From the regression results; size,premium growth rate and liquidity and age are identified as most important determinant factors of profitability hence premium growth rate and size, are positively related. In contrast liquidity and age negatively but significantly related with profitability. Lastly, leverage and tangibility of asset are not significantly related with profitability

Sectorial Transition Dilemma of Smallholder Grain Farmers To Light Manufacturing Industry in Jimma Zone, Oromia Regional State, Ethiopia

This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex,  marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training,  Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training. This research was designed to assess willingness, ability, motive, preference and determinants of smallholder major grain farmer’s transition dilemma to light manufacturing industry in Jimma Zone, Oromia Region, Ethiopia. The participants of the study were selected using two stage non probabilistic, purposive sampling. Then, we prepared sample frame from each Kebeles fall in our selection pool. Finally, 399 household heads (farmers) were selected for this study, using stratified sampling. Then, primary data collected via structured questionnaire was analyzed descriptively and in binary logistic regression. Accordingly, majority of smallholder major grain farmers need to stay on their current crop farming. Increasing these products productivity and price is one possible means of intervention to improve the areas smallholder farmer’s livelihood. The descriptive statistics depicts that, small holder farmers’ transitional dilemma to light manufacturing sector and the fate of industrialization plan in Jimma zone is at its infant stage and those small holder farmers have almost no any awareness, no know how about technologies, not trained and they have no entrepreneurial skill. The result revels that the major determinants of smallholder grain farmers sectorial transition plan in the study area was significantly affected by age, sex,  marital status, skilled labour access, access to credit, price product expectation, place,Awareness, Education level, Entrepreneur skill, Training,  Transport and Energy.Hence, effort should be geared in manner that build farmers capacity through adult literacy program, formal education and with short term training. 

Impact of Electricity Consumption on Ethiopian Economic Growth: An Empirical Analysis

Electricity consumption plays a vital role in achieving sustainable economic growth. This study attempts to investigate the impact of electricity consumption on Ethiopian economic growth, time-series data was ranging from 1980 to 2018. The Autoregressive Distributed Lag Model (ARDL) was developed for the data analysis. The results of ARDL revealed that the economic growth was significantly affected by electricity consumption, energy consumption, foreign direct investment, and electricity price both in the long run and short run. While also affected by urbanization and government consumption in the long run. The speed of adjustment revealed that 60.12% of the short-run adjustment is made per year towards long-run equilibrium. Water, mine, and energy office should give important attention to electricity wastage control and integrated monitoring strategies to electricity consumption which are crucial for improving Ethiopian economic growth. The summary of electricity consumption by policymakers and plan designers could bring better improvement on economic growth

Does Maternal Social Capital Have a Health Payoff? Evidence from Jimma Zone, Ethiopia

The relationship between social capital and health has been the subject of research in developed countries. However, empirical evidence from developing countries is scarce. This study examines the association between different dimensions of social capital and maternal health in Jimma Zone of Ethiopia.  We utilized a cross sectional data gathered from a random sample of 422 mothers in four districts of the zone. We utilized two-stage regression procedure. We have also controlled for other confounding factors and heterogeneity of the study areas. We find that an increase in an overall score of a mother’s social capital would increase her probability of enjoying better health condition by about 0.61. However, we found mixed effects of different sub-dimensions of social capital. Increases in scores of sub-dimensions of structural social capital like social cohesion and networks are associated with 0.39 and 0.19 decreases in probability of enjoying better health status. Nevertheless, increases in scores of dimensions of cognitive social capital like general trust, institutional trust and sense of security would increase probability of enjoying better health status by 81%, 64% and 65% respectively. Therefore, people with higher levels of social capital – especially in terms of social interaction and all forms of cognitive social capital– engage in healthier behaviors and feel healthier. Since the other forms of capital such as physical and human capital are scarce in countries like Ethiopia, health policies that aim to promote maternal health should promote favorable social capital, which is abundantly available in these countries

Does Maternal Social Capital Have a Health Payoff? Evidence from Jimma Zone, Ethiopia

The relationship between social capital and health has been the subject of research in developed countries. However, empirical evidence from developing countries is scarce. This study examines the association between different dimensions of social capital and maternal health in Jimma Zone of Ethiopia. We utilized a cross sectional data gathered from a random sample of 422 mothers in four districts of the zone. We utilized two-stage regression procedure. We have also controlled for other confounding factors and heterogeneity of the study areas. We find that an increase in an overall score of a mother’s social capital would increase her probability of enjoying better health condition by about 0.61. However, we found mixed effects of different sub-dimensions of social capital. Increases in scores of sub-dimensions of structural social capital like social cohesion and networks are associated with 0.39 and 0.19 decreases in probability of enjoying better health status. Nevertheless, increases in scores of dimensions of cognitive social capital like general trust, institutional trust and sense of security would increase probability of enjoying better health status by 81%, 64% and 65% respectively. Therefore, people with higher levels of social capital – especially in terms of social interaction and all forms of cognitive social capital– engage in healthier behaviors and feel healthier. Since the other forms of capital such as physical and human capital are scarce in countries like Ethiopia, health policies that aim to promote maternal health should promote favorable social capital, which is abundantly available in these countries