Department of Economics

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

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Subject: search.filters.subject.Ethiopia.

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Now showing 1 - 4 of 4
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    The nexus between energy poverty and food poverty: Empirical evidence within Wereda Laelay Maychew Central Zone of Tigray region
    (Mekelle University, 2025-09-23) Zemichael G/yohans
    This study rigorously quantifies the causal effect of household energy poverty on the severity of food insecurity in Wereda Laelay Maychew, Central Zone of Tigray, addressing the critical methodological challenge of endogeneity present in previous correlation-based studies. The research employed a two-stage Control Function Approach (CFA), using geographic distance to the electricity grid as a valid instrumental variable. This allowed for unconfounded estimation of the impact on the Household Food Insecurity Access Score (HFIA_Score_27), a continuous count variable, via a corrected Poisson regression model. The formal endogeneity test conclusively validated the necessity of the CFA correction (P<0.001). The corrected estimates established a robust, positive, and highly significant causal relationship. Specifically, the Average Marginal Effect (AME) revealed that being classified as energy poor causes the expected HFIA_Score_27 to increase by an average of 15.72 units (P<0.001). This strong quantitative evidence moves beyond mere association, establishing energy poverty as a fundamental structural determinant that significantly compromises food security. The findings necessitate an integrated policy framework prioritizing substantial investment in clean, affordable household energy access as an essential strategy for sustainable reductions in food insecurity.
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    Specialization: (Development Policy Analysis) A Research on Household Economic (Income, Expenditure, and Welfare) Impacts of Dairy Farming in Adwa City, central Zone, Tigray Region,
    (Mekelle University, 2025-09-25) Hager Takele
    This study investigates the household economic (income, expenditure, and welfare) impacts of dairy farming in Adwa City, Central Zone, Tigray Region, Ethiopia. Using a mixed-methods design, both quantitative and qualitative data were collected through household surveys, focus group discussions (FGDs), and key informant interviews (KIIs). A stratified random sampling technique was employed to select 370 respondents, comprising 115 dairy-farming and 250 non-dairy households, along with 5 key informants. Quantitative data were analyzed using Propensity Score Matching (PSM) and quantile regression, while qualitative data were examined through thematic analysis. The findings reveal that dairy farming significantly enhances household income, increases expenditure on education and healthcare, and improves dietary diversity and nutritional outcomes. These benefits are particularly notable among low-income households, indicating the pro-poor potential of dairy-based livelihoods. However, the study also identifies structural challenges such as limited access to quality feed, veterinary services, and market infrastructure. It concludes that strengthening institutional support, promoting gender-responsive programs, and investing in value addition are essential to maximize the contribution of dairy farming to sustainable household welfare and post-conflict economic recovery in Adwa and similar settings.
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    Factors Affecting Growth of Micro and Small Enterprises: The Case of Enticho Town
    (Mekelle University, 2025-11-25) Etenesh Yeabyo
    This study examines the internal and external determinants influencing the growth and sustainability of Micro and Small Enterprises (MSEs) in Enticho Town, Tigray, Ethiopia. Although MSEs play a central role in job creation, income generation, and structural transformation, their growth remains constrained by multiple financial, infrastructural, and institutional factors. Using quantitative cross-sectional research design, primary data was collected from 155 MSE operators across manufacturing, trade, service, construction, and urban agriculture sectors. The data were analyzed using descriptive statistics, correlation analysis, and multiple linear regression to identify the most significant predictors of enterprise growth. The findings reveal that infrastructure quality, workplace conditions, internal managerial capacity, and marketing capability are key positive contributors to MSE growth. Financial constraints and governance related challenges, including complex regulations, taxation burdens, and administrative inefficiencies negatively affect performance and limit expansion. The regression model explained a substantial proportion of the variation in MSE growth, underscoring the combined effect of internal competencies and external enabling conditions. The study concludes that sustainable MSE development requires integrated interventions that address financial access, infrastructure, capacity building, and institutional reforms. Improving access to credit, investing in enabling infrastructure, strengthening entrepreneurial and managerial skills, and enhancing transparent governance are essential for fostering a supportive business ecosystem. The findings provide important insights for policymakers, local administrators, development partners, and practitioners involved in promoting inclusive economic growth.
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    The Impact of Access to Microfinance Credit on Multidimensional Poverty Index (MPI) Reduction Among Female-Headed Households in Wukro Town, Eastern Zone, Tigray Region, Ethiopia
    (Mekelle University, 2025-11-25) Fasil Adane
    This study examines the impact of access to microfinance credit on multidimensional poverty (MPI) among female-headed households in Wukro Town, Tigray Region, Ethiopia. Employing a mixed-method approach that combines quantitative household surveys with qualitative interviews, the research investigates how microfinance influences income, education, health, and overall living standards. The findings indicate that microfinance significantly reduces multidimensional poverty by enabling women to start or expand small businesses, support children’s education, and access basic healthcare and food. However, microfinance alone does not fully address the deeper challenges in post-conflict settings; many households continue to face psychosocial stress, limited social inclusion, and unstable income due to market fluctuations. These results align with the multidimensional poverty frameworks of (Sen, 1999) and (Alkire, 2015), emphasizing the need to integrate financial services with social, psychological, and community support. The study concludes that while microfinance is a critical tool for economic empowerment, its long-term effectiveness in reducing MPI in conflict-affected areas requires complementary interventions such as mental health support, gender-sensitive programming, and broader post-conflict rehabilitation.