Abstract
The aim of this paper is to identify the main factors related to administrative, infrastructure and market related issues affecting private investment activities in East Gojjam zone with the intention of providing valuable information about the investment environment of the zone to potential investors. Descriptive type of research design has been used in this study by giving more emphasis on qualitative data analysis method. On the other hand, quantitative research analysis has been used to provide numerical measurement and analysis of the magnitude and extent of the problem and trend of private investment in the Zone. The study used both primary and secondary data. Pre-designed self-administered questionnaire has been used to collect primary data. In order to obtain primary data, a total of 310 questionnaires were distributed to investors found in East Gojjam zone and 305 of them were filled and returned to researchers. The outcome of this study revealed that, the major bottlenecks of investment in East Gojjam related to administrative and policy related factors include policy distortions and rent seeking, direct government involvement in some investment areas, corruption and dysfunction of the judiciary system, malpractices in granting licenses of investment activities, favoritism in tax revenue collection, arbitrary and inappropriate enforcement of business regulations, bureaucracy and policy implementation delay. Whereas, infrastructural factors affecting private investment include inadequate electric energy, poor water supply and transportation and communication problems. Shortage of foreign currency, fluctuations of exchange rates, access to credit in formal financial institutions, inadequate amount of loan, high interest rates, and bureaucracy of lending institutions to give loan are finance related factors affecting private investment in the study area. Key w ords : Private Investment, Administrative Factors, Infrastructural Factors, Finance Factors. DOI : 10.7176/EJBM/11-28-02 Publication date :October 31 st 2019
Highlights
According to the report of United Nations Conference on Trade and Development (UNCTAD) (2002), Investment is one of the primary engines of growth in all economies
Based on the report of East Gojjam zone investment bureau from 1,797 total investments in East Gojjam Zone 1365 are in six selected woredas (Debre Markos, Mota, Bichena, Dejen, Amanual and Debre Elias)
The main factors affecting private investment are depicted in the following part of analysis
Summary
According to the report of United Nations Conference on Trade and Development (UNCTAD) (2002), Investment is one of the primary engines of growth in all economies. Its effectiveness rests on strong complementarities with other elements in the growth process, most notably technological progress, skills acquisition and the development of innovative capability. These elements make investment a natural point of departure for Governments seeking to formulate a robust development strategy. A day the development of any country is determined by improved investment activity. Without investment activity it is not possible to have any development rather to remain in the circle of poverty. This is especially true in developing countries like Ethiopia
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
