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1 – 10 of over 1000Messay Asgedom Gobena and Daniel Gebreegziabher Kebede
This paper aims to examine the contribution of Ethiopia’s cash economy to financial crimes. It also investigates the regulation of cash in the context of controlling crime…
Abstract
Purpose
This paper aims to examine the contribution of Ethiopia’s cash economy to financial crimes. It also investigates the regulation of cash in the context of controlling crime stemming from the cash economy.
Design/methodology/approach
This study relies on primary data generated from 20 interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, selected commercial banks and law enforcement agencies and document review from government reports, media press and statutes, as well as secondary data from online and offline sources.
Findings
The cash-intensive nature of Ethiopia’s economy has enabled a significant amount of cash to circulate outside of the formal financial system. This money is partly to blame for the prevalence of criminal activities such as cash hoarding, corruption and illicit financial flows. To address the threat of crime posed by the cash economy, the Ethiopian Government has taken measures such as restricting cash withdrawals from financial institutions, limiting the amount of cash individuals can hold and demonetizing the banknotes. The measures enable the banks to collect the cash circulating outside of the formal financial sector. However, the effect of these measures on reducing future criminality remains uncertain. Improving the financial inclusivity of the country, specifically expanding basic financial products to the rural areas, digitalizing the country’s payment system, raising general financial awareness and establishing a strong financial consumer protection framework would play a critical role in reducing future criminality and transforming the cash-intensive into a cashless economy.
Originality/value
This paper provides a first-of-its-kind analytical perspective on the contribution of Ethiopia’s cash economy to criminal activity and the adequacy of countermeasures so far taken.
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Agaredech Jemaneh and Carol Azungi Dralega
COVID-19 affected all global activities. The print media industry was one of the affected fields. This research investigates the challenges and opportunities that COVID-19 brought…
Abstract
COVID-19 affected all global activities. The print media industry was one of the affected fields. This research investigates the challenges and opportunities that COVID-19 brought to the Ethiopian newspapers. Political Economy of Media theory is used to analyse data obtained from documents and in-depth interviews with managers of two leading media houses; the government-owned Ethiopian Press Agency (EPA) and the private Capital newspaper. The findings show that print media faced two key challenges. First, their circulation decreased due to the COVID-19 as a result of the economic recession. This was compounded by the second challenge, based on the fact that not only don’t these newspapers own printers, they also lack a established formal distribution infrastructure. As a result, they still had to pay highly for printing while selling copies at a reduced price. However, media hybridisation, innovative projects, and sponsored pages helped the newspapers stay on the market. This study recommends that newspaper publishers run their printing machines, expand the media technology, change the attitude of print journalists, and capacitate them to utilise media hybridisation as important solutions.
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One of the oldest civilizations of Africa, Ethiopia is today at the advent of industrialization in various business sectors. Agriculture being a primary source of income (50 per…
Abstract
Purpose
One of the oldest civilizations of Africa, Ethiopia is today at the advent of industrialization in various business sectors. Agriculture being a primary source of income (50 per cent of the GDP) is now transforming into more dynamic and new sectors. Textile and apparel is one of the sectors that has received a lot of attention from the government and the objective is to become sourcing destinations of the world. The purpose of the paper is to provide an overview of the current advances to the stakeholders, academia and industry from concept to the consumer. The aim of the paper is to present a transition of advances made in textile and apparel business that the country has made in the past decade and also to examine the potential of the consumer for this country. The consumer in the country is young and brings a lot of novel opportunities for textile and apparel industry.
Design/methodology/approach
This analysis is an empirical journey of the author’s research in academia and textile and apparel industry in Ethiopia.
Findings
This paper establishes a connection between the stakeholders, academia, industry and beneficiaries of this business so that it could become a guideline for future business investors. It also highlights the problems within this sector and provides a clear idea for domestic companies to compete with global competitors in terms of upcoming future business trends.
Originality/value
Presently, in the atmosphere of fashion and textiles, there is air about Ethiopia being the next manufacturing hub of the world in Africa. However, no academic literature is available which summarizes the opportunities and tasks in this industry, and this paper caters to the need of the hour.
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Maru Shete and Roberto J. Garcia
The purpose of this paper is to identify the proportion of farmers with constrained and unconstrained participation in the agricultural credit market and estimate the parameters…
Abstract
Purpose
The purpose of this paper is to identify the proportion of farmers with constrained and unconstrained participation in the agricultural credit market and estimate the parameters that determine agricultural credit market participation in Finoteselam town, Ethiopia.
Design/methodology/approach
The study followed cross‐sectional study design where primary data were collected from 210 households through a questionnaire survey in Finoteselam town, north western Ethiopia. A combination of purposive and random sampling techniques was employed. Descriptive statistics were used to identify the proportion of farmers with different levels of participation in the agricultural credit market. The bivariate probit model was estimated to identify the parameters that determine smallholder credit market participation.
Findings
The study revealed that 48 percent of smallholder farmers are constrained non‐participating (i.e. rationed out) from the agricultural credit market due to lack of access to the service, 44.8 percent of them are constrained participating, 2.4 percent unconstrained participating and 4.8 percent of them are unconstrained non‐participating. Estimation results of the bivariate probit model indicated that variables such as high dependency burden, large landholding size, household's labor endowment, participation in off‐farm employment activities and incurring unforeseen expenses increased the probability of households to participate in agricultural credit markets. On the other hand, village dummy variable, old age of household head and borrowing from other sources decreased the probability of households participating in the agricultural credit market.
Practical implications
The findings raise policy concerns to devise a mechanism for creating a functioning rural insurance market, improve the labor market for encouraging off‐farm employment activities, devise wealth‐creating schemes and address the credit need of those smallholder farmers who are still rationed out from the agricultural credit market.
Originality/value
Little has been done on the subject of agricultural credit market participation in Ethiopia. Hence, this research will add to the thin literature on the subject.
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Naser Yenus Nuru and Hayelom Yrgaw Gereziher
The main purpose of this study is to examine the effect of commodity price shock on the Ethiopian economy for the sample period of 1991 Q1–2016 Q1.
Abstract
Purpose
The main purpose of this study is to examine the effect of commodity price shock on the Ethiopian economy for the sample period of 1991 Q1–2016 Q1.
Design/methodology/approach
The effect of commodity price shock is analyzed using Jorda's (2005) local projection method. The shock is, however, identified by applying short-run contemporaneous restrictions in a vector autoregressive model based on Cholesky decomposition.
Findings
The results signify that output is positively affected by the shock to the commodity price. In addition, domestic consumer price responds positively and significantly to world commodity price shock after the first quarter. The commodity price shock has also a positive effect, on impact, on money supply. Foreign exchange reserve increases significantly from the fourth quarter onwards and real effective exchange rate appreciates on impact, though insignificantly, in response to the increase in commodity price.
Originality/value
This paper adds to the limited available literature on the effect of commodity price shock for developing countries in general and the Ethiopian economy in particular.
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Examines the small but growing literature placing career related behaviours and practices within their national context and outlines a Western framework of career strategies…
Abstract
Examines the small but growing literature placing career related behaviours and practices within their national context and outlines a Western framework of career strategies. Identifies some of the key economic, social and political developments in Ethiopia’s recent history and presents and discusses data from a survey of Ethiopian careerists which explores factors influencing career decisions, levels of (and reasons for) career optimism/pessimism, and career strategies employed. Data from a previous study are presented to enable a comparison of the strategies of Ethiopian and UK careerists. Ethiopian careerists are found to make use of all those career strategies used by UK careerists and, in addition, employ “national politics” and “family and tribal/ethnic affiliations” in their efforts to gain career advancement.
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The purpose of this paper is to investigate the impact of migration on the livelihoods of Ethiopians. It is widely acclaimed that migration has positive effects on livelihoods…
Abstract
Purpose
The purpose of this paper is to investigate the impact of migration on the livelihoods of Ethiopians. It is widely acclaimed that migration has positive effects on livelihoods. This paper investigates whether this claim is a fallacy or a reality. Can migration be conceptualized as a strategy for livelihood enhancement? Although Ethiopia has a large number of migrants both internally and externally, this paper focuses on the impact of external migration on the livelihoods of Ethiopian migrants and their families.
Design/methodology/approach
Using primary data, the paper attempts to establish whether migration enhances livelihoods. Qualitative data are used. Primary data were collected and analyzed using SurveyMonkey. SurveyMonkey is an internet-based software that has a facility for interview questions and it analyses data automatically on submission of responses. The survey achieved a response rate of 52 percent (218 out of 420). A follow-up survey, done between March 20 and April 16, 2018 to validate the online responses, involved 12 respondents.
Findings
Results show that migration is important in the sustenance of livelihoods. Both pecuniary and non-pecuniary benefits have been realised. In addition, migration also benefits development at home.
Practical implications
The Ethiopian Government should develop policy options that promote the inflow of remittances for livelihood enhancement.
Originality/value
The paper uses SurveyMonkey to gather data from a number of respondents (crowdsourcing data collection). The SurveyMonkey made possible a crowd data gathering process.
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Yitayew Mihret Wagaw, Dessalegn Getie Mihret and Degefe Duressa Obo
The purpose of this study is to examine international financial reporting standards (IFRSs) adoption in Ethiopia to explain transnational political-economic antecedents of this…
Abstract
Purpose
The purpose of this study is to examine international financial reporting standards (IFRSs) adoption in Ethiopia to explain transnational political-economic antecedents of this change and its associated consequences on the regulatory landscape of accounting.
Design/methodology/approach
Using a neo-Gramscian theory of globalization and the state, the study examines interview and document review evidence pertaining to IFRS adoption in Ethiopia by focusing on the period from 1991 to 2014.
Findings
The study illustrates that a dialectical rather than deterministic interaction between global and national forces explains IFRS adoption in Ethiopia, i.e. IFRS adoption falls within the broader scheme of universalizing regulatory institutions in the globalizing world economy. Compared to the commonly understood trends of IFRS adoption circumscribed within a pre-existing regulatory framework, this study illustrates IFRS adoption as a primary driver of major reforms to the accounting regulatory landscape.
Originality/value
This study contributes original theoretically grounded insights into the transnational political-economic rationale for IFRS adoption and consequences of the adoption on the accounting regulatory landscape.
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Tekeste Birhanu, Sewunet Bosho Deressa, Hossein Azadi, Ants-Hannes Viira, Steven Van Passel and Frank Witlox
This paper aimed to investigate the determinants of loans and advances from commercial banks in the case of Ethiopian private commercial banks.
Abstract
Purpose
This paper aimed to investigate the determinants of loans and advances from commercial banks in the case of Ethiopian private commercial banks.
Design/methodology/approach
The study randomly selected seven commercial banks to represent the population stratified on their asset, deposit and paid-up capital amounts. The study utilized an unbalanced panel data model as each bank started operation at a different period of time and considered the period 1995–2016 for secondary details.
Findings
The findings showed that the deposit size, credit risk, portfolio investment, average lending rate, real gross domestic product (GDP) and inflation rate had significant and optimistic effects on the lending and advancement of private commercial banks. On the contrary, liquidity ratio had significant and negative effects on private commercial bank loans and advances. Finally, the study forwarded a feasible recommendation for concerned organs to focus on deposit size, credit risk, portfolio investment, average lending rate, real GDP, inflation rate and liquidity ratio. The results of this study will help banking industry policymakers and planners understand how to minimize inflation and unemployment by improving development and sustainable economic growth.
Originality/value
The findings of this study can also affect the general attitudes of a society by increasing knowledge and improve the quality of life for the general public.
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