College of Business and Economics

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Start date: 2024Subject: search.filters.subject.Ethiopia

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Now showing 1 - 9 of 9
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    THE INFLUENCE OF SOCIAL MEDIA ADVERTISEMENT ON CONSUMERS’ PURCHASE INTENTION TOWARDS CASTLE BEER: A CASE STUDY OF CONSUMERS IN MAICHEW TOWN
    (Mekelle University, 2025-09-23) BRHANU TEKA
    This study investigates the influence of social media advertising on consumer purchase intention within the Ethiopian beer industry, using Castel Beer as a case study. The research was motivated by the sector's growing competitiveness and the critical role of social media for marketing, especially given Ethiopia's regulatory restrictions on alcohol advertising in traditional media. The general objective was to examine the effect of social media ad attributes on purchase intention. The specific objectives were to evaluate the impact of understandability, memorability, credibility, originality, and message appeal. A quantitative, cross-sectional explanatory research design was employed, utilizing a structured questionnaire distributed to 365 purposively selected Castel Beer consumers in Maichew town. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis with SPSS version 27. The findings reveal that all five advertising attributes have a statistically significant positive effect on purchase intention. The regression model explained 67.9% of the variance in purchase intention. Message appeal (β = 0.394) and understandability (β = 0.379) were the most potent predictors. The study concludes that effective social media ads in this context must be clear, engaging, memorable, credible, and original. It is recommended that Castel Beer and other breweries prioritize message clarity and creative appeal in their social media strategies. Future research should expand to other regions and include potential consumers to enhance generalizability. .
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    Cost-Effectiveness Analysis of Fertilizer Input on Sorghum Productivity in Tahtay Adyabo, northwester Tigrai
    (Mekelle University, 2025-09-23) Surafeal Gerezghir
    This study evaluates the cost-effectiveness of various fertilizer inputs on sorghum productivity in Sheraro, Northwestern Tigray. Sorghum (Sorghum bicolor) plays a vital role in Ethiopian agriculture, serving as a staple food and a key source of income for many households. Utilizing a mixed-methods approach, this research examines the impact of different types of fertilizers organic, inorganic, and blended on yield outcomes, economic viability, and soil health. Key findings indicate that nitrogen-based fertilizers are predominantly used among farmers, yet a significant interest in organic options is emerging. The economic analysis reveals that integrated nutrient management practices can enhance productivity while promoting sustainability. This study provides practical recommendations for farmers, aiming to improve their fertilizer use efficiency and inform agricultural policy decisions. By addressing the gaps in knowledge regarding fertilizer effectiveness and its economic implications, this research contributes to the ongoing efforts to enhance agricultural productivity and food security in Ethiopia.
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    The Impact of Foreign Direct Investment on Poverty Reduction in Ethiopia: A Cointegrated VAR Approach
    (Mekelle University, 2025-08-23) Shishay Tsehaye
    This study investigates the impact of Foreign Direct Investment on poverty reduction in Ethiopia over the period 1990 to 2023, employing a Cointegrated Vector Autoregressive model. The primary objective is to examine both the long-run and short-run dynamics between Foreign Direct Investment inflows and poverty, proxied by real Gross Domestic Product per capita, while controlling for trade openness, government expenditure, inflation, infrastructure development, and education expenditure. The research uses annual secondary data sourced from the World Bank, the United Nations Conference on Trade and Development, the National Bank of Ethiopia, and the Ethiopian Investment Commission. Stationarity was tested using the Augmented Dickey-Fuller and Phillips-Perron methods, followed by optimal lag selection based on the Akaike Information Criterion, the Schwarz Bayesian Criterion, and the Hannan-Quinn Criterion. Johansen cointegration analysis confirmed the existence of two long-run equilibrium relationships among the variables, leading to the estimation of a Vector Error Correction Model. The empirical findings reveal a positive and statistically significant long-run effect of Foreign Direct Investment on real Gross Domestic Product per capita, indicating that sustained Foreign Direct Investment inflows contribute to improved living standards and poverty reduction. Infrastructure and education spending were also found to enhance the poverty-reducing effects of Foreign Direct Investment, while inflation exerted a negative impact. Short-run effects of Foreign Direct Investment on poverty reduction were positive but smaller in magnitude, with the error correction term indicating a thirty-seven percent annual adjustment toward long-run equilibrium. Granger causality tests confirmed unidirectional causality from Foreign Direct Investment to poverty reduction. Variance decomposition and impulse response functions further underscored the importance of Foreign Direct Investment in explaining changes in living standards over time. The study concludes that Foreign Direct Investment plays a significant role in poverty reduction in Ethiopia when supported by investments in infrastructure and human capital, alongside macroeconomic stability. Policy recommendations include strengthening the investment climate, targeting Foreign Direct Investment toward labor-intensive and pro-poor sectors, expanding infrastructure, improving education and vocational training, and ensuring macroeconomic stability. These findings provide both academic and policy relevance, offering evidence-based guidance for maximizing the developmental benefits of Foreign Direct Investment in Ethiopia.
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    THE IMPACTS OF URBAN AGRICULTURE ON POVERTY REDUCTION IN AKSUM TOWN, CENTRAL ZONE OF TIGRAY, NORTHERN ETHIOPIA
    (Mekelle University, 2025-10-25) ATSBEHA GEBRESLASIE
    This study examines the impacts of urban agriculture on poverty reduction in Aksum Town, located in the Central Zone of Tigray, Northern Ethiopia. As urban poverty continues to challenge local livelihoods, urban agriculture has emerged as a potential strategy for enhancing household income, food security, and employment. The study employed, methods, approaches, incorporating quantitative data from a sample of 300 households drawn from three kebeles. Descriptive statistics and Propensity Score Matching (PSM) were used to evaluate the socio-economic benefits associated with urban farming. The findings indicate that households engaged in urban agriculture experience significantly higher income levels, better food availability, and improved resilience compared to non-participating households. Key urban farming activities include vegetable cultivation, poultry rearing, fruit tree planting, and small-scale livestock production. These activities not only supplement household food consumption but also generate marketable surplus, creating additional income streams. Moreover, urban agriculture contributes to urban dwellers employment in the town. The study concludes that urban agriculture serves as a viable poverty reduction strategy in Aksum town by improving livelihoods, promoting food self-sufficiency, and strengthening social and economic stability. It recommends that local authorities and development partners integrate urban agriculture into urban planning and provide technical and financial support to enhance its effectiveness and sustainability.
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    The effect of Leadership Styles on Organizational Performance in Tanqua Milash Wereda, Centeral Zone, Tigray, Ethiopia
    (Mekelle University, 2025-06-28) Gebreslassie Hailemariam
    This study investigates the effect of leadership styles on organizational performance in Tanqua Milash Wereda, a newly established administrative unit in Tigray, Ethiopia. Given its nascent stage and challenges like resource constraints, political interference, and workforce shortages, effective leadership is crucial for service delivery and sustainable development. The research used a combination of methods to gather information, collecting numerical data from 215 structured questionnaires and personal insights from 18 semi-structured interviews, while looking at six types of leadership: autocratic, transactional, transformational, democratic, charismatic, and laissezfaire. Key findings indicate a predominant reliance on autocratic leadership, with 77.4% of respondents reporting exclusion from decision-making. This leadership style strongly correlated with poor organizational performance, evidenced by critically low employee motivation (78.3% negative perception) and minimal recognition of staff contributions (82.1% negative perception). Transformational and democratic styles, while linked to higher performance in literature, were largely absent in practice. Qualitative data further highlighted systemic barriers including inadequate leadership training, bureaucratic inefficiencies, and political interventions hindering good governance. The study contributes empirical evidence on leadership dynamics in newly formed Ethiopian weredas, addressing a significant research gap. It highlights the serious problems caused by strict control in areas with limited resources and suggests practical solutions like leadership training programs, reforms for involving people in decision-making, and changes in policies to reduce political interference. Ultimately, this research emphasizes the need for a systemic shift toward adaptive leadership approaches to enhance organizational effectiveness, employee satisfaction, and public service delivery in Tanqua Milash Wereda, offering a framework for similar developing contexts.
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    CURRENT STATUS, CHALLENGES AND OPPORTUNITIES OF INTEREST FREE BANKING IN ETHIOPIA
    (Mekelle University, 2024-12) TEKLEMARIAM ESTIFANOS
    Interest Free Banking (IFB) services offer ethical, Shariah-compliant financial solutions and are gaining popularity in Ethiopia among Muslim and non-Muslim clients. This study examines the socio-demographic profile of IFB clients, perceptions of services among stakeholders, managerial insights, and the operational status of IFB. A mixed-method approach was adopted, utilizing structured questionnaires for quantitative data and interviews with IFB division managers for qualitative insights. Descriptive statistics summarized key findings, while thematic analysis interpreted qualitative responses. The study reveals increasing acceptance of IFB services, driven by their ethical principles, but identifies challenges such as limited public awareness, misconceptions, and economic uncertainties. Clients and employees view IFB as a viable alternative to conventional banking, and managers highlight the need for Shariah compliance, fund segregation, and employee training. Key opportunities includeIX product diversification and digital banking solutions to meet evolving client demands. To unlock IFB’s full potential, the study recommends raising public awareness, fostering community engagement, and investing in innovative financial products and digital services. Strengthening Shariah governance and enhancing operational efficiency are essential to promoting ethical financial inclusion in Ethiopia.
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    FACTORS INFLUENCING FASHION BRAND PREFERENCE (A Case Study of Consumers of clothing and footwear Products in Mekelle City)
    (Mekelle University, 2025-02) Kibrom Birhane
    This study investigates the factors influencing fashion brand preferences among consumers in Mekelle City, Ethiopia, addressing the gap in empirical research on emerging markets where cultural, economic, and social dynamics intersect with global trends. Employing a mixedmethods approach, the research integrates quantitative surveys (n = 384) and qualitative interviews to analyze demographic, product-related, brand-related, and socio-cultural determinants. The theoretical framework draws on Cognitive Dissonance Theory, Social Identity Theory, and Affective Decision-Making, contextualized within Ethiopia’s unique sociocultural landscape. Key findings reveal product quality (β = 0.41, p < 0.001) as the strongest driver of brand preference, followed by brand image (β = 0.24) and consumer experience (β = 0.15). Price negatively influenced preferences (β = -0.18), reflecting cost sensitivity. While cultural relevance and social influence were significant, their impact was modest, suggesting a balance between tradition and modernity. Demographics such as age, income, and education significantly shaped preferences, with younger, higher-income, and educated consumers showing stronger brand loyalty. Notably, gender had no significant effect, challenging assumptions about gendered fashion choices. The regression model explained 71% of variance (R² = 0.71), underscoring the robustness of these predictors. Qualitative insights highlighted demands for affordability, localized designs, and ethical practices. The study recommends fashion brands prioritize quality, adopt value-based pricing, and integrate cultural narratives into marketing. Policymakers are urged to support local artisans and sustainable practices. Limitations include the geographic focus on Mekelle and reliance on convenience sampling, suggesting future research across diverse Ethiopian regions and longitudinal analyses. By bridging gaps in global consumer behavior theories, this research offers actionable strategies for brands targeting Mekelle’s evolving market while contributing to academic discourse on emerging economies
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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.