The Ethiopian Journal of Business and Economics

Foreign Bank Entry Restriction Effect on Bank Efficiency and Stability: A Comparative Study of Ethiopia and Sub-Saharan African Countries

Kidist Jiffar — 2025-10-01

This study measures the foreign banks’ entry restriction effect on bank efficiency and stability in commercial banks from sub-Saharan African (SSA) countries and compared Ethiopia with other SSA countries based on their foreign banks’ entry restrictiveness. Bank financial stability was measured by z-score and bank efficiency proxies using the cost-to-income ratio (CIR). Country-based banking aggregate z–score and CIR were used to measure banking sector financial stability and efficiency, respectively. Some selected SSA countries are used as a sample over the period 2000-2021 and a panel data regression techniques random effect IV model and Hausman and Taylor model are used for measuring bank efficiency and stability, respectively. The empirical findings show a significant negative relationship between restricted financial regulation and bank efficiency, while restricted financial regulation has a significant positive effect on bank stability. Finally, the result inclined toward the theory of liberalization. Through liberalizing foreign bank entry, banks can boost the efficiency of the banking sector.

The Preferences of Youth Agripreneurs for Agricultural Market Outlets in the Lake Zone, Tanzania

Jacob Kilamlya — 2025-10-01

The agricultural sector is vital to Tanzania’s economy, contributing ~30% to GDP and employing over 65% of the workforce. With a growing youth population, youth groups hold significant potential to drive sustainable economic development through innovative agricultural practices. However, challenges like limited market access persist despite government efforts to promote youth engagement in economic development initiatives. This study examines the factors influencing the selection of agricultural market outlets by youth groups, including wholesalers, assemblers, and direct consumers, in Mwanza City and Ukerewe District. Data from 93 youth groups were collected using a cross-sectional design with stratified random sampling. Multinomial logistic regression, guided by Random Utility Theory, was used to analyse outlet selection. Findings show that higher education levels among group leaders reduce the likelihood of selling to assemblers, as do specific product categories. Improved infrastructure and better market access increase the probability of engaging with assemblers, while unfavourable market arrangements deter it. Inadequate infrastructure also lowers the likelihood of selling directly to consumers. The study recommends enhancing education and training, emphasizing gender inclusivity in leadership, improving market infrastructure, formalizing market arrangements, and promoting product diversification and value-added activities. These measures can empower youth groups to overcome barriers and contribute to sustainable economic growth in Tanzania’s agricultural sector.

Evaluating the Economic Impact and Food Security Implications of Climate Change in Ethiopia: An Economy-wide Analysis

Tewodros Negash Kahsay — 2025-12-31

The impact of climate change on Ethiopian agriculture and overall economy, as well as its implications on food security, is evaluated using a multi-country, multi-sector computable general equilibrium (CGE) model. The analysis employs the GTAP 10 Database and the GTAP-W model that differentiates between rainfed and irrigated agriculture. The economy-wide impact of climate change in 2050 is evaluated for two global emissions scenarios (A1 and B1), each from two global circulation models (GCMs) (CSIRO and MIROC). The results reveal that climate change induces a significant decline in agricultural production, resulting in a surge in market prices of crops. Climate change also depresses economic growth and results in substantial welfare loss. Moreover, the findings of the study reveal that climate change worsens the already grave food security situation in the country through its adverse effect on the ‘food availability’ and ‘access to food’ dimensions of food security. Therefore, government policy needs to be geared towards supporting adaptation to climate change in the country through the provision of access to credit, land, and climate information.

Understanding Firms’ Continuance Intention of the E-filing System: Mediating Role of Perceived Complexity and Relative Advantage

Girma Zeleke — 2025-12-31

The research examines the factors continuing e-filing use (post-adoption behaviours) by claiming business taxpayers in Ethiopia’s voluntary e-filing setting is an under-researched topic. This study proposes and tests an integrated framework that incorporates Technological-Organizational-Environmental frameworks, along with Diffusion of innovation theory and Information system success model, to subsequently provide an understanding of organizational continuance intention. We employed a cross-sectional survey design, and used PLS-SEM analysis of a survey study of 208 medium and large enterprises to test a dual mediation model of continuance where system and information quality influence via DOI constructed relative advantage and complexity. Results indicate that system and information quality affect continuance indirectly via DOI mediators; high quality boosts perceived advantage and reduces complexity, which directly influence continued use. Furthermore, government oversight, IT infrastructure, top management support, and service quality significantly and positively influence continuance intent, whilst security concerns and complexity act as barriers to continuing use. Non-mandated e-filing systems appear to need more than a functional system to encourage voluntary continuance. The reality of the taxpayer cognitive process must be taken into consideration while building user-friendly interfaces that minimize complexity and provide features that make the system's relative benefit observable and indisputable.

Does the Empowerment Dimension Really Matter in the Measurement of Multidimensional Poverty? Insights from Smallholder Dairy Producers in the Central Highlands of Ethiopia

Abrham Seyoum Tsehay — 2025-12-31

This study examines multidimensional poverty among rural households in Basona Werana Woreda, North Shewa, Amhara Region, using survey data gathered from 262 rural households through a multi-stage sampling design. Employing alternative Multidimensional Poverty Index (MPI) frameworks, the analysis estimates poverty with and without an empowerment dimension under both nested and equal weightings to assess the sensitivity of poverty estimates to indicator composition, weights, and deprivation cutoffs. Household data were analyzed using descriptive methods and a fractional logit regression model to identify the drivers of multidimensional poverty. The results using the default 33% MPI cutoff revealed persistently high levels of deprivation, with poverty incidence ranging from 61.9% to 90.9% depending on the specification. Incorporating empowerment consistently increases measured poverty under nested weights and contributes substantially to overall MPI, highlighting deep structural deficits in agency and collective participation among rural households. Determinant analysis shows that membership in water user associations and input supply groups, access to electricity, larger household size, and lower dependency ratios significantly reduce multidimensional poverty, while female headship, older household heads, and greater distances to basic services exacerbate deprivation. Contrary to expectations, off-farm participation is associated with higher MPI when empowerment is included, suggesting that such activities serve mainly as coping strategies among land-constrained households. Overall, the findings underscore the methodological and policy importance of integrating empowerment into multidimensional poverty measurement and call for rural development strategies that strengthen institutions, infrastructure, and agency-enhancing interventions.