Determinants of domestic private investment growth of kaffa zone: evidence from some selected woreda

Abstract

Domestic Private investment is key determinants of economic growth. The aim of this study was to examine the determinants of domestic private investment in kaffa zone, Ethiopia. by giving due concern on personal, financial, administrative and locational factors. Mixed research approach was used by giving emphasis on both qualitative and quantitative data analysis method. Primary data which was collected by predesigned self-administered questionnaire and structured interview was use. Cluster sampling technique was used to determine participants of the study. all investors operating in six wereda were selected. In order to obtain primary data total of 138 questionnaires were distributed to investors found in selected woreda of kaffa zone. To analyze descriptive data descriptive statistics like mean, median, and standard deviation were used. To analyze inferential data, binary logistic regression model was used with help of statistical package for social science (SPSS-26) software. The result of the study shows that investment experience, level of education, investment incentives, access to land, access to finance, infrastructure, access to market, access to raw material are positive and significant determinants of domestic private investment growth in the area. Inflation and covid-19 pandemics are negative and significant determinants of domestic private investment growth of kaffa zone. It is recommended that concerned bodies in the area should have to take prior step to improve growth status and mitigate obstacles such as poor investment incentives, infrastructural facilities access to land, access to finance and access to market in order to improve investment climate in the area.