Department of Economics

Permanent URI for this collectionhttps://repository.mu.edu.et/handle/123456789/118

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    DETERMINANTS OF MARKET PARTICIPATION OF SMALL SCALE DAIRY FARMERS: THE CASE OF MEKELLE CITY
    (Mekelle University, 2025-03-01) RAHEL GEBREYESUS HAILU
    This study aimed to investigate the factors influencing market participation among small-scale dairy farmers in Mekelle city, focusing on demographic features, farm characteristics, access to services and infrastructure, credit availability, training programs, and access to information. A quantitative research design was employed, using a survey to collect data from 214 dairy farmers in urban area. The study utilized descriptive statistics and binary logistic regression analysis to identify key factors affecting market participation. The results revealed that farm ownership, access to essential services, credit access and availability of market had a significant positive impact on farmers' participation in dairy markets. Unexpectedly, participation in training programs was found to be negatively affecting market engagement. The study concluded that improving land ownership issues, access services and to credit, and timely market information would enhance market participation among dairy farmers. Policy recommendations included developing tailored financial service for smallholder farmers and improving access to market information. Future research could further explore the role of training on market participation of dairy farming.
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    THE ROLE OF MICRO AND SMALL ENTERPRISES IN EMPLOYMENT CREATION AND INCOME GENERATION (A CASE STUDY OF ADI TOWN IN TIGRAY, ETHIOPIA)
    (Mekelle University, 2025-02-23) LEGESSE AMBAYE
    The general objective of the study was to examine the Role of Micro and Small Enterprises in Employment Creation and Income Generation taking the town of Abiy-Adi as a case study for this study were collected from 327 respondent individuals who where employees and operators of Micro and Small Enterprises. In addition, secondary data were collected from Tigray regional state bureau of Trade, Industry and Transport .primary data was collected using questionnaire and interviews as data collection instruments. Moreover qualitative data was collected using focus group discussion for data analysis; descriptive statistical tools such as tables, frequency distribution, and percentage were used to describe the responses on the role of Micro and Small Enterprises. The study revealed that MSEs significantly contribute to local economic growth, providing approximately 5-23 jobs per enterprise annually and generating average incomes of enterprise between 30, 000-200, 000 Birr. Micro and Small enterprise also empower Women and Youth, addressing poverty and enhancing livelihoods. However, challenges such as limited access to finance and infrastructure hinder their growth. Most of the Micro and Small Enterprises also face constraints during operation and start up time and the major constraints are found to be lack of finance and unavailability of affordable rented houses. Therefore, Micro and Small Enterprises appear to have great contribution in reducing unemployment and in providing income both for firm owners and employees alike. This study implies that expanding access to finance through credit and improving supply of working place need to be implemented in earnest maintain and boost further the employment and income generation potential of micro and small enterprises.
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    The Role of Institutions in Economic Growth in Ethiopia: An Empirical Analysis Using the Autoregressive Distributed Lag (ARDL) Model
    (Mekelle University, 2025-02-23) Giday Gebrekidan
    The main goal of this research was to look at institution’s role in the performance of Ethiopian economy which is considered an underdeveloped economy. For this purpose the ARDL bounds testing approach to cointegration proposed by Pesaran et al. (2001) and updated with Kripfganz and Schneider (2020) critical values and approximate p-values was used. The short-run and long-run correlations between institutional and other macroeconomic and control variables over the period 1982-2022 were investigated. It made use of secondary data obtained from the World Bank’s World Development Indicators (WDI) for the macroeconomic and control variables and it used Freedom House’s Political Freedom Index for the institutional variable. In case of variables where the WDI has gaps other supplementary sources were used such as the YCharts, Federal Reserve Bank of St. Louis and the National Bank of Ethiopia. The empirical result obtained for the Ethiopian economy suggests the institutional variable takes the lion’s share in its impact on the economy and implies that once the institutional dynamics is introduced in the model the other macroeconomic variables loss their predictive powers.
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    Determinant of Urban Households’ Food Insecurity: The Case of Mekelle City
    (Mekelle University, 2025-02-23) Getnet Ashagrie
    This study seeks to analyze food insecurity issues by assessing socio-economic factors that impact the food insecurity of households in urban areas of Mekelle City. The analysis was based on survey data gathered from 397 urban households selected using a simple random sampling procedure. Primary and secondary data were used. The data regarding household determinants were analyzed using descriptive statistics and a binary logit model. The survey result showed that about 27.71% and 72.29% of sample respondents were food insecure and secure, respectively. The empirical results estimated using the survey data to identify the determinants of food insecurity among urban households in the study area revealed mixed impressions. Among the variables considered, age of the household head, income of the household, house ownership, and household food expenditure had a statistically significant effect on food insecurity in the study area. This study adds to the literature by contextualizing urban food insecurity within Sen's Entitlement Framework and the Sustainable Livelihoods Framework in post-conflict areas. Most importantly, the study has delivered findings that call for targeted interventions on income diversification, affordable housing, and gender-responsive policies. This is followed by practical recommendations for policymakers, underscoring the need for context-specific approaches to urban food insecurity in conflict-affected areas.
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    Technical Efficiency of Urban Savings and Credit Co-operative Organizations (SACCOs): A case study of Mekelle city, Tigray.
    (Mekelle Univerity, 2025-02-23) G/slassie Kidanu
    The efficiency of urban SACCOs is critical for financial inclusion and economic development. This study examines the technical efficiency of urban SACCOs in Mekelle city, Tigrai, using stochastic frontier Analysis (SFA) and a census method covering all SACCOs in the study area. The research aims to assess the efficiency levels of SACCOs, identify factors influencing efficiency, and provide policy recommendations for improving their performance. A quantitative approach was employed, utilizing financial and operational data from SACCOs. The SFA model was applied to estimate efficiency scores, and relevant explanatory variables were analyzed to determine their impact on efficiency. The findings reveal that, on average the SACCOs in the study area were operating efficiently with high level of efficiency difference. Significant number of SACCOs exhibit inefficiencies due to factors such as low members saving mobilization, inadequate managerial capacity, potential challenges with digital banking adoption, suboptimal resource utilization, and regulatory constraints. The results underscore the need for targeted policy interventions, increase member savings, capacity building initiatives, manage administrative expense, and improved governance structures to enhance SACCOs efficiency. Strengthening regulatory frameworks and promoting financial education among SACCOs can further contribute to the sector’s sustainability. The study provides valuable insights for policy makers, SACCO managers, and stakeholders aiming to improve the financial performance of urban SACCOs in Mekelle city.