• Gentie Alemu Abinet

Abstract This study mainly focused on the determinants of domestic private investment activity in west Gojjam zone (the case of Finoteselam and Bure towns). The major objective of this study is to describe the trend of domestic private investment activity and the determinant factors that influence domestic private investment activity in Finoteselam and Bure towns. Thus, despite the policy reform, Ethiopia has experienced a lot of problems; low level of saving, limiting investment activities and high unemployment rates. In light of this recent expectation of GDP growth rates to have 11% per annum, however IMF alerts that it will be declined to 7% due to restricted access to the private sector investments as compared with a large share of public investments in the economy. Reports in Ethiopia (EIA, 2012) has showed that investment projects are not in the right executed and they delay their operations in all investment sectors. Apart from this, a study conducted by Hussien (2000) also has explained that even if there are many number of projects licensed in indifferent regions of Ethiopia, the real implementation investment rate is very low and more than 50% of investment projects in every project period are not realized. As the researcher obtained data from west Gojjam zone, the domestic private investment has increased at a declining rate from period to period (2001 to 2011 E.C). The researcher has collected primary data by using questionnaire and interview from current investors and employees of investment offices of both towns. From the total population, sample size has been determined by using purposive sampling technique and proportional sampling technique. The researcher also used random sampling technique to draw sample respondents from the population. Descriptive statistics has also used to describe the trend of domestic private investment activity. The researcher also used multiple linear regression model to identify the determinant factors considering the association between dependent and interdependent variables with the help of significance level. The researcher found that access to infrastructure, access to finance and access to land are problems of domestic private investments in the study areas. The researcher has forwarded recommendations to make easily accessible infrastructure, investment fund and pieces of lands for domestic private investors.

Key word: Domestic, private, investment

"Determinants of Domestic Private Investment in West Gojjam zone (the case of Finoteselam and Bure towns)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 7, page no.e769-e789, July-2022, Available :http://www.jetir.org/papers/JETIR2207498.pdf

"Determinants of Domestic Private Investment in West Gojjam zone (the case of Finoteselam and Bure towns)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 7, page no. ppe769-e789, July-2022, Available at : http://www.jetir.org/papers/JETIR2207498.pdf