College of Business and Economics

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Subject: search.filters.subject.Ethiopia

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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.