The Role of Urban Private Investment to Economic Growth in Hosanna Town.

Abstract

The role of fast dynamic private investment sector is one of the policy instrument via which government of developing as well as developed took into account as, a means of alleviating poverty and promoting capital accumulation and technological progress. The government of Ethiopia after adopting several reforms since 1992 achieved progress in promoting private investment sector growth and took it as engine of achieving accelerated economic growth and development. The private sector has multipurpose role to play in the economic growth via acting as source of innovation and technological growth, source of employment and income, as well as means of promoting resource allocation such human resources as well natural resources. This study is aimed to investigate the role of urban private investment to economic growth in hosanna town  by taking into account the data for the time period from 2001 to 2010 E.C. the study would have employed both primary as well as secondary data in order to carry on deep rooted analysis of the role of private investment to economic growth coupled with employing descriptive tool of data analysis such as percentage as well as mean to come up with valid result of analysis.  The result of the study indicates that the majority of the investors are male as compared to the female investors. When we see the age category of the respondents the majority of the investors are found in economically active age category followed by having few household members moreover the study found that private investment activities in the study area has been showing progress from time to time due to incentives provided by the government including access to credit from bank as well as working space coupled with provision of training. The study recommends that there should be promotion of economic growth of the city coupled with promoting structural transformation of economy and building appropriate institutional framework. Moreover the study recommends the promotion of access to bank credit ,working place as well as creation of conducive legal as well as institutional climate cable of boosting economic growth and private investment involvement  in several activities.

Keywords: private investment, economic growth, factor productivity, development