Micro Level Determinants of Private Investment Performance: Focus in Soro Woreda in Hadiya Zone; Southern Ethiopia

Abstract

The study set out to make empirical analysis on factors influencing private investment performance in Soro Woreda. In doing that, the study collected primary data from investors Registered Private Investment in Soro Woreda in year 2018 through administering a questionnaire to respondents. The study used both qualitative and quantitative approaches and covered domestic private investment.  The study reveals that the variables:  political factors, location factors and market factors were significant with positive correlation with private investment in Soro Woreda. Hence, have predictive powers over private investment in Soro Woreda. The results show that investment facilitation services have positive and significant predictive power as a factor to attract more investment to Soro Woreda. For example size of the market, government law and regulation, incentive given from town investment facilities provided in the Soro Woreda.  This is portrayed by the probability of 0.034, 0.085, 0.054 and 0.007 which is significant at 5%, 10% and 1 per cent level respectively. The rest of the variables like political factors, government rules and regulations, raw material availability, political stability and however, are not significant and hence have no predictive power as attraction of investment to Soro Woreda.

Keywords: Investment, micro-level, private investment, logistic regression.

DOI: 10.7176/JESD/10-11-07

Publication date:June 30^th 2019