African Journal of Economics and Business Research

Review on Determinants of Rural Youth to Access Formal Credit and their Perception Towards Credit Provision in Ethiopia

2024-06-12T12:33:29+00:00

Microcredit becomes so important tool in recent years that has a great role in the fight against poverty. It has been adopted as one of the sustainable development strategies at the international level. The provision of credit can help the youth to make own economic decisions and escape from poverty by engaging in income generation activities. This study was aimed to review youth perception, constraints of credit use and determinants of credit use among youth in Ethiopia. The review was based on reviewing secondary data from journal articles, books, published and unpublished reports of national and international organizations based on their relevance to the topic. According to many literatures, variables such as sex, perception of the application procedure for loan, prior saving requirement, loan size and distance from the lending institution were more likely to negatively influence formal credit access by rural youth. Therefore, the government and other policy makers need to enhance enrolment of formal education, appreciation of saving habit, expansion of road, improving of financial infrastructures, provision of awareness creation training towards the benefit of credit, and improving of lending system in order to improving youth livelihoods.

Factors Determining Knowledge Sharing Behaviour among Employees by Mediating Role of Knowledge Sharing Intention: Evidence from Bank of Abyssinia

2024-06-12T12:52:43+00:00

This study aims at assessing the factors determining knowledge sharing behaviour among employees by mediating role of knowledge sharing intention with the evidence from Bank of Abyssinia. The data for study was generated from both primary and secondary data so as to address the overall objective of the study and research questions. A quantitative research approach was used to translate the underlying concepts into measurable forms to facilitate the testing of the formulated hypotheses and employed to empirically determine the relationship between the variables of interest by applying appropriate statistical data analysis techniques. An explanatory design was conducted with the intension of establishing direction and significance of the relationship between variables under investigation. A series of hypotheses are posited to explore the relationships of the variables and to test the effects of mediator. A field survey conducted among the employees of Bank of Abyssinia was used to gather the data. Out of the 381 surveys sent, hypotheses were empirically tested using structural equation modelling software to analysis regression and confirmatory factors of variables on a data set of participants. Moreover, in order to test the relationships between various variables of knowledge sharing attitude, subject norm and perceived behaviour control, regression analysis and structural equation modelling was used. The major finding show that attitude and perceived behaviour factors have significant effect on knowledge sharing activities. The study concludes that knowledge sharing intention has significant positive effect on knowledge sharing behaviour among employees and the factors knowledge sharing attitude, subject norm and perceived behaviour control have direct effect on the on knowledge sharing among employee of banks. Therefore, the study recommended that banks promote Knowledge Sharing by establishing an appropriate environment that helps employees to encounter and communicate ideas effectively. When knowledge is transferred, it helps banks to generates a new knowledge base which in turn enhances innovative activities

The status and determinants of multidimensional rural poverty at household level: The case of Boricha Woreda, Sidama region, Ethiopia

2024-06-12T12:57:09+00:00

Poverty is a complex and multifaceted social problem around the world, expressly in developing countries. Governments and national and international development agencies have sought to understand the multidimensional nature of poverty and the mechanisms to alleviate it. This study was conducted in Boricha Woreda, Sidama Regional State, Ethiopia, focusing to assess the status of multidimensional poverty of rural households and to find its determinants. A sample of 364 households was selected using systematic random sampling technique. The data were collected from primary and secondary sources. The multidimensional poor and non-poor households were identified using the Alkire-Foster method of multidimensional poverty, and the determinants of poverty were investigated using logistic regression models. Findings show that 40 percent of households are multidimensionally poor. The results of the binary logit model showed that education, cultivated land, agricultural income, livestock ownership, and frequency of contact with the population were statistically significant, which was theoretically expected to be associated with the multidimensional poverty status of rural households, showed a negative association at 1% and 5%. Promoting adult education, appropriate family planning, and quality healthcare are therefore important policy tools to adequately address multidimensional rural poverty.

The Short-Run and Long-Run Relationships between Economic Growth and Inflation in Ethiopia

2024-06-12T13:00:45+00:00

The relationship between inflation and economic growth is one of the debatable issue and the most important macroeconomic discussions among macro economists, policy-makers and monetary authorities in all countries. The dilemma of inflation and economic growth is one of the most important macroeconomic policy problems. This study addresses the short run and long run relationship between inflation and economic growth. This study used yearly time series data that was taken from World Bank database year ranged from 1982 to 2021. Before analysing the data Augmented Dickey fuller test and Phillips curve were conducted to check the stationarity of data series. The co-integration test for long run relationship is check with Johnson co-integration and the econometric models like vector autoregressive and Vector Error Correction Model were applied. Descriptive Statistics results show that the average of inflation rate is more than the average of output growth and rate of economic growth and rate of inflation moves with the similar trend but inflation more fluctuation. The joint hypothesis test results of a VAR model show that both lagged value of inflation does not have any effect on economic growth. The result of a Granger causality test shows that economic growth cause inflation at 1% significance level but inflation rate does not causes economic growth. The result of co-integration test Vector Error Correction Estimation using Johansen trace statistic and maximum eigenvalue statistic show exhibit long run relationship between the two variable policy makers should exert effort to made stabilize the relationship between inflation and economic growth in the long-run.