Journal of Finance, Management and Development

Domestic Saving and Economic Growth Nexus in Ethiopia

Wondaferahu Mulugeta Demissie — 2025-10-31

Accumulated savings serve as a foundation for capital stock, which subsequently foster an increase in investment and output, and ultimately promotes economic growth. Accordingly, this paper aims to analyze the effect of domestic saving on economic growth in Ethiopia, utilizing annual data from 1981 to 2023 and employing the Autoregressive Distributive Lag (ARDL) approach. Prior to conducting the regression analysis, the unit root and bounds cointegration tests indicate that the study variables exhibit mixed orders of integration, thereby validating the suitability of the ARDL approach and confirming the existence of long-term cointegration among them, respectively. Furthermore, the regression results reveal that human capital, exports of goods and services, and the average lending interest rate are significant contributors to economic growth in both the long and short run. Conversely, while the money supply robustly enhances growth only in the long term, domestic savings and economic reforms contribute positively, whereas the inflation rate significantly hinders economic growth in the short term. Therefore, it can be inferred that economic growth reacts differently to variations in domestic savings over the long and short term. Lastly, the coefficient of the Error Correction Term is negative and significant as expected, affirming the presence of a long-run relationship among the study variables. Furthermore, various post-estimation diagnostics and parameter stability tests have confirmed that the results are reliable for meaningful interpretation and validate the robustness of the empirical model. Consequently, this study underscores that the Ethiopian government should formulate and implement policies aimed at enhancing human capital, increasing both public and private savings, diversifying exports, and curbing inflation to expedite economic growth in Ethiopia.

Public Procurement Management and Digital innovations

Lemabo Jaboro Satore — 2025-10-31

Public procurement management is among one of the essential functions of public management, playing a significant role in stimulating economic efficiency, sustainability, and governance objectives. The systematic review of literature examines the effectiveness of public procurement management practices by combining findings from diverse scholarly studies. Keeping with PRISMA guidelines, the study used a thematic content analysis method to identify literature published between 2018 and 2024. The fundamental themes discovered contain procurement efficiency, governance, circular procurement, green public procurement, public-private partnerships, and the integration of evolving technologies such as block chain. The findings disclose persistent challenges such as inefficiencies, corruption, lack of transparency, and inadequate stakeholder engagement, alongside emerging opportunities to leverage sustainability and technological innovation. This systematic literature review adds to the academic discourse by providing a comprehensive synthesis of current knowledge and contributing actionable insights for policymakers and practitioners.

Recurrent Audit Findings in Government Organizations:

Deresse Mersha Lakew — 2025-10-31

The main objective of this study was [to identify recurrent audit findings in public organizations in Ethiopia. To achieve this objective, 47 public universities were selected, and their annual audit reports were collected for 13 successive years from the Office of the Federal Auditor General of Ethiopia. A descriptive research design was used to categorize recurrent audit findings in the selected public universities. The study found that irregularities associated with property management, accounting, and reporting are the most prevalent among public universities. On the other hand, irregularities associated with project management are few in number, although this does not necessarily imply that the amount of money misused is insignificant. To reduce recurrent audit findings, the government should continue to hold the leaders of public universities accountable for the mismanagement of public funds under their administration

Determinants of Household Graduation from the Productive Safety Net Program

Temesgen Desta — 2025-10-31

Ethiopia has historically grappled with chronic poverty and food insecurity, prompting the government to implement anti-poverty initiatives, notably the Productive Safety Net Program (PSNP), in rural areas since 2005. Despite substantial government efforts to tackle these problems, food insecurity and vulnerability continue to be significant social, economic, and political concerns in the country. Therefore, it is imperative to examine the factors that determine rural households’ ability to graduate from the PSNP and achieve food security. The study employed cross-sectional data and utilized both quantitative and qualitative methods. Data were collected from 186 individuals, including PSNP beneficiaries and graduated households, and a binary logistic regression model was used for analysis. Only 39.24% of households owned oxen, 12.4% utilized irrigation, and 33.33% accessed credit, with the average farmland size measured at 0.5202 hectares, below the national average of 1.33 hectares and the regional average of 1.5 hectares. Beneficiaries earned 252.52 birr less in annual farm income than did graduated households, and their off-farm income was lower by 4,169.05 birr. Model results indicated that seven variables significantly affected household graduation from the PSNP. As the education level of household heads increased from one category to another, the probability of graduation rose by 10.524%. Oxen holdings increased the likelihood of graduation by 26.0323%, while off-farm income contributed a marginal increase of 0.0018% on the log scale, and access to irrigation increased the likelihood of graduation by 23.9155%. In contrast, as family size increased, the probability of graduation decreased by 9.101%. Similarly, limited access to fertilizers reduced the probability of graduation by 23.487%, and limited access to credit decreased it by 11.832%. Qualitative analysis further revealed additional factors affecting graduation, including insufficient PSNP payments, substantial public work commitments, large family sizes, low education levels, small landholdings, limited fertilizer access, inadequate irrigable land, weak credit institutions, and high interest rates. A minimal percentage of beneficiaries owned oxen, utilized irrigation, and accessed credit, which significantly hampered their welfare. These findings highlight the crucial role of social and economic factors in improving the likelihood of program graduation. Addressing these barriers through targeted interventions is essential for enhancing the overall effectiveness of the PSNP. To improve household graduation rates and overall food security, it is vital to implement targeted interventions that address these barriers, promote sustainable economic stability, and ensure food self-sufficiency among beneficiaries.

The Effect of Budget Control on the Public Sector Effectiveness Moderated by Information and Communication

Mehari Haileselassie — 2025-10-31

Budget control is a crucial management accounting technique designed to plan, monitor, and adjust a company's budget to achieve its financial objectives. This study investigates the effect of budget control on public sector effectiveness, with a particular focus on the moderating role of information and communication within the Addis Ababa City Administration. The research involved thirty public sectors, comprising eleven sub-cities and nineteen additional sectors. Data were gathered using a structured Likert-scale questionnaire, which reached 368 respondents, of whom 346 completed the survey, alongside structured interviews with key informants. Utilizing a pragmatic research paradigm and a mixed-methods approach, the study integrated both qualitative and quantitative data. The research defined budgetary control as the systematic management of costs through goal-setting, performance comparison, and corrective actions. It analyzed components such as budget implementation, accounting and reporting, auditing, and monitoring as independent variables, while information and communication were treated as a mediating variable. Data analysis was performed using SPSS 26 and AMOS 23, with Structural Equation Modeling (SEM) confirming the reliability and validity of the constructs. The findings revealed significant relationships: effective budget implementation, accurate accounting, and regular audits each positively influence organizational effectiveness. The findings also indicate a negative moderating effect of information and communication, suggesting that ineffective communication can undermine the relationship between budget implementation and effectiveness. Conversely, effective communication strengthens the positive impacts of accounting and auditing. These results highlight that while budget control practices are crucial for public sector effectiveness, strategic improvement of communication systems is essential for maximizing their benefits. Recommendations include revising budgeting policies and enhancing communication frameworks. Future research should explore these dynamics across broader institutional contexts and consider longitudinal studies to evaluate long-term impacts.