Assessment of Determinants of Private Investment Performance in Hadiya Zone Shone Town

Abstract

The study set out to make empirical analysis on factors influencing private investment performance in shone town. In doing that, the study collected primary data from investors Registered Private Investment in shone town in year 2018 through administering a questionnaire to respondents. The study used both quantitative and qualitative approaches and covered both domestic private and foreign investment. The study reveals that the variables:  political factors, location factors and market factors were significant with positive correlation with private investment in bombe town. Hence, have predictive powers over private investment in bombe. The results show that investment facilitation services have positive and significant predictive power as a factor to attract more investment to shone town. For example, size of the market, government law and regulation, incentive given from town investment facilities provided in the town.  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 shone  town.

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