Determinants of Private Investment Performance in Ethiopia

Mikiyas Nigussie Jobir

doi:doi:10.11648/j.ijafrm.20230803.11

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Determinants of Private Investment Performance in Ethiopia

Mikiyas Nigussie Jobir

Published in International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 3)

Received: 3 March 2023 Accepted: 7 July 2023 Published: 20 July 2023

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Abstract

This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 3)
DOI	10.11648/j.ijafrm.20230803.11
Page(s)	57-67
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Determinants, Private Investment, Ethiopia, Performance

References

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APA Style

Mikiyas Nigussie Jobir. (2023). Determinants of Private Investment Performance in Ethiopia. International Journal of Accounting, Finance and Risk Management, 8(3), 57-67. https://doi.org/10.11648/j.ijafrm.20230803.11

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ACS Style

Mikiyas Nigussie Jobir. Determinants of Private Investment Performance in Ethiopia. Int. J. Account. Finance Risk Manag. 2023, 8(3), 57-67. doi: 10.11648/j.ijafrm.20230803.11

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Mikiyas Nigussie Jobir. Determinants of Private Investment Performance in Ethiopia. Int J Account Finance Risk Manag. 2023;8(3):57-67. doi: 10.11648/j.ijafrm.20230803.11

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@article{10.11648/j.ijafrm.20230803.11,
  author = {Mikiyas Nigussie Jobir},
  title = {Determinants of Private Investment Performance in Ethiopia},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {8},
  number = {3},
  pages = {57-67},
  doi = {10.11648/j.ijafrm.20230803.11},
  url = {https://doi.org/10.11648/j.ijafrm.20230803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230803.11},
  abstract = {This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.},
 year = {2023}
}

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TY  - JOUR
T1  - Determinants of Private Investment Performance in Ethiopia
AU  - Mikiyas Nigussie Jobir
Y1  - 2023/07/20
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230803.11
DO  - 10.11648/j.ijafrm.20230803.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 57
EP  - 67
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230803.11
AB  - This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.
VL  - 8
IS  - 3
ER  -

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Author Information

Mikiyas Nigussie Jobir

Department of Accounting and Finance, Dire Dawa University, Drie

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APA Style

Mikiyas Nigussie Jobir. (2023). Determinants of Private Investment Performance in Ethiopia. International Journal of Accounting, Finance and Risk Management, 8(3), 57-67. https://doi.org/10.11648/j.ijafrm.20230803.11

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ACS Style

Mikiyas Nigussie Jobir. Determinants of Private Investment Performance in Ethiopia. Int. J. Account. Finance Risk Manag. 2023, 8(3), 57-67. doi: 10.11648/j.ijafrm.20230803.11

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AMA Style

Mikiyas Nigussie Jobir. Determinants of Private Investment Performance in Ethiopia. Int J Account Finance Risk Manag. 2023;8(3):57-67. doi: 10.11648/j.ijafrm.20230803.11

Copy | Download

@article{10.11648/j.ijafrm.20230803.11,
  author = {Mikiyas Nigussie Jobir},
  title = {Determinants of Private Investment Performance in Ethiopia},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {8},
  number = {3},
  pages = {57-67},
  doi = {10.11648/j.ijafrm.20230803.11},
  url = {https://doi.org/10.11648/j.ijafrm.20230803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230803.11},
  abstract = {This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Private Investment Performance in Ethiopia
AU  - Mikiyas Nigussie Jobir
Y1  - 2023/07/20
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230803.11
DO  - 10.11648/j.ijafrm.20230803.11
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 57
EP  - 67
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230803.11
AB  - This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.
VL  - 8
IS  - 3
ER  -

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