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Determinants of Private Investment Performance in Ethiopia

This study was conducted with the main objective of investigating and analyzing factors that determine private investment performance in Ethiopia. Study may give valuable information to the stakeholders in the Investment arena including the government, investors and general public. The study may clearly show the prospects for the investment activity. Moreover, the study explains determinants of private Investment performance in Ethiopia. 27- Years secondary data (i.e. from 1992 to 2018) was collected from various national and international institutions for example EIC NBE, MOFED, and WB. Then, ARDL regressions model was applied after the data sets were transformed to natural log form and, to account for inherent problems of time series data, different tests such as correlation, autocorrelation tests, Hetroscedasticity, multicolinarity and stationarity test ware made for. The regression results show that Growth GDP, and access to Domestic credit have significant positive effect on private investment, while Trade openness external debt, and real effective exchange have significant negative effect on performance of private investment under the study period. Hence, to promote the performance of private sector in the country, it is essential to take measures that can improve real income of people, and make trade liberalization and institutions that are crucial to attract private investment. Besides, strengthen financial institutions to provide sufficient financial resource to private investors.

Determinants, Private Investment, Ethiopia, Performance

Mikiyas Nigussie Jobir. (2023). Determinants of Private Investment Performance in Ethiopia. International Journal of Accounting, Finance and Risk Management, 8(3), 57-67.

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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