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Research Article
Examining the Effect of Tax Audit on Improving Taxpayers’ Compliance
Jebo Tesfaye Chebeso*
Issue:
Volume 14, Issue 3, September 2025
Pages:
44-59
Received:
21 March 2025
Accepted:
19 June 2025
Published:
4 August 2025
Abstract: This study examines the effect of tax audits on improving taxpayers' compliance in the context of the Dilla Town Revenue Office. It investigates five determinants influencing compliance:- tax education, tax rate, audit quality, top management support, and the tax legislation system. An explanatory research design is employed, utilizing quantitative approaches, with data collected through questionnaires from 250 tax office employees. The census method was employed to select respondents and a total of 250 tax office employees participated. The analysis employs descriptive and inferential statistics, including ordinal logistic regression using SPSS software. The findings reveal that tax education, tax rate, and the tax legislation system have significant positive impacts on compliance. Conversely, audit quality and top management support negatively influence compliance levels. Implement regular training sessions and workshops for taxpayers to increase awareness of tax obligations and the benefits of compliance. Invest in training for tax auditors to ensure they are well-equipped to conduct thorough and fair audits, utilizing modern tools and technologies. Review and simplify tax laws to make them more accessible and understandable for taxpayers, thus reducing confusion and errors in compliance. Conduct periodic evaluations of tax rates and policies to ensure they remain fair and conducive to compliance, making adjustments as necessary to reflect economic conditions.
Abstract: This study examines the effect of tax audits on improving taxpayers' compliance in the context of the Dilla Town Revenue Office. It investigates five determinants influencing compliance:- tax education, tax rate, audit quality, top management support, and the tax legislation system. An explanatory research design is employed, utilizing quantitative...
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Research Article
Determinants of Non-Performing Loan: The Case of Some Selected Private Commercial Banks in Ethiopia
Abubaker Demssie,
Abebe Tilahun Kassaye*
Issue:
Volume 14, Issue 3, September 2025
Pages:
60-67
Received:
14 July 2025
Accepted:
24 July 2025
Published:
13 August 2025
Abstract: This study empirically investigates the determinants of non-performing loans (NPLs) in selected private commercial banks in Ethiopia, focusing on both bank-specific and macroeconomic factors. Employing an explanatory research design with a quantitative approach, the study analyses panel data collected from twelve private commercial banks over a ten-year period from 2012 to 2021. Data analysis was conducted using EViews 10 software, incorporating descriptive statistics, correlation matrices, and multiple linear regression models with both fixed and random effects. The findings reveal that exchange rates exert a positive and statistically significant influence on NPLs. Conversely, income diversification, capital adequacy, loan growth rate, and the loan-to-asset ratio are found to have significant negative effects on NPLs. The study is limited in scope to private commercial banks, excluding public banks and non-bank financial institutions, and relies solely on secondary data, which may omit relevant qualitative factors. Future research could address these limitations by expanding the sample and incorporating primary data for a more comprehensive understanding. This study adds value by offering context-specific insights into the Ethiopian banking sector, filling gaps in existing research, and providing practical recommendations for policymakers and banking professionals to manage and reduce NPLs, thereby supporting financial stability in emerging economies.
Abstract: This study empirically investigates the determinants of non-performing loans (NPLs) in selected private commercial banks in Ethiopia, focusing on both bank-specific and macroeconomic factors. Employing an explanatory research design with a quantitative approach, the study analyses panel data collected from twelve private commercial banks over a ten...
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Research Article
Impact of Foreign Currency Reserve on Economic Growth in Ethiopia: An Economic Policy Analysis
Tadele Melaku Chala*
Issue:
Volume 14, Issue 3, September 2025
Pages:
68-87
Received:
18 July 2025
Accepted:
4 August 2025
Published:
27 August 2025
Abstract: Background: Ethiopia's foreign currency dynamics have significantly influenced its economic growth, particularly in recent years. The nation's chronic shortage of foreign exchange has been a persistent challenge, affecting various sectors of the economy. Such shortage hinders the importation of essential goods and services, disrupt business operations, and impede economic growth. Moreover, foreign exchange controls have made it difficult for investors to repatriate profits, potentially deterring foreign investment. Methods: This study аnаlyzed the imрасt оf fоreign сurrenсy reserve оn Economic growth in ethiopia using 30 yeаrs оf dаtа spinning frоm 1991–2021. The study employed the Autoregressive Distributed Lag model to analyze the time series data, utilizing advanced econometric techniques to ensure the robustness of the results. This methodology provided a rigorous foundation for analyzing the impact of foreign currency on Ethiopia's economic growth, leveraging both modern econometric techniques and robust testing procedures. Results: The АRDL model result indiсаted thаt foreign currency reserve, Broad money supply, Exports and Trade openness index hаs а роsitive аnd signifiсаnt effeсt оn ethiopian GDP growth in the lоng run and Government final consumption expenditure, Gross fixed capital formation hаs а negative аnd signifiсаnt effeсt оn ethiopian GDP growth in the lоng run. The real effective exchange rate has positive sign and is statistically significant in explaining the economic growth in the long run. The government of Ethiopia may increase economic growth by 0.0850961% if it can increase its expenditure by 10%. The long-run result indicated that import had a negative relationship with manufacturing sector performance and statistical significance (P-value=0.0031) at 5% level. The long-run coefficient -0.074675 implies a unit increase in inflation will diminish the manufacturing sector by 0.074675. The country’s economic growth over the past decade was fueled by massive borrowing that has created a debt burden of more than US$26 billion, or with a public debt to-GDP ratio of 61.8%. Conclusion: By emphasizing homegrown innovation, the government should also endeavor to reduce the reliance of the manufacturing sector on imported equipment and supplies. The policymaker ought to take into account devaluing the birr currency price to its actual exchange rate value. Foreign currency reserves play a crucial role in fostering economic growth in Ethiopia by stabilizing the macroeconomic environment and by enhancing and adopting a strategic approach to reserve allocation and investment. Strengthening institutional frameworks and improving transparency will further optimize the impact of reserves on economic growth.
Abstract: Background: Ethiopia's foreign currency dynamics have significantly influenced its economic growth, particularly in recent years. The nation's chronic shortage of foreign exchange has been a persistent challenge, affecting various sectors of the economy. Such shortage hinders the importation of essential goods and services, disrupt business operati...
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Research Article
Onion Market Chain: The Case of Toke Kutaye District, Oromia, Ethiopia
Dinkisa Mekurya*
Issue:
Volume 14, Issue 3, September 2025
Pages:
88-101
Received:
20 April 2025
Accepted:
25 June 2025
Published:
9 September 2025
Abstract: The research was conducted in two onions producing kebeles of Nagafile and Gorosole in Toke Kutaye district, west shewa Zone of Oromia national regional state to analyze Onion market chain. The research data were collected from 120 producers, 10 traders, and 12 consumers. The data for the study was gathered both from primary and secondary source. Specifically, the study attempted to address the main actors involved, structure-conduct-performance and challenges and opportunities of onion market chains in the study area. Analysis of the study clearly identified what Onion market conduct, structure and performance look like in the study area. The Onion market chain in the study area was characterized by inefficient market structure. The major threats to enter into Onion market chain was capital requirement and cost of licensing. The available opportunity and challenge in the study area were high demand from consumer, suitable climate for production and poor credit service, lack of market information, lack of suitable storage respectively. On the contrary, the level of consumption is very low for reasons of unavailability and market chain imperfection. Building active linkages among all actors in the chain, Existence of institutional support especially extension service on product handling and marketing and improving market information and cooperative development.
Abstract: The research was conducted in two onions producing kebeles of Nagafile and Gorosole in Toke Kutaye district, west shewa Zone of Oromia national regional state to analyze Onion market chain. The research data were collected from 120 producers, 10 traders, and 12 consumers. The data for the study was gathered both from primary and secondary source. S...
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