Author(s): Abraham Ababiya

Abstract: The study was estimated the allocative efficiency estimation and analyzing their determinant factors of 212 enterprises selected by multi-stage sampling techniques. In addition to these focus group and key informants stakeholders participants were used to sharpen the data collected from sample to fill the identified research gaps and to address the research objectives of the study. The data were analyzed using descriptive statistics and econometric model called stochastic frontier model. The overall average enterprises allocative efficiency (AE) scores of total sampled enterprises obtained from stochastic frontier model results was 59.92% (it were 60.89% for micro level enterprises and 63.69% for small level enterprises) respectively. The AE of total sample enterprises were statistically and significantly determined by number of employee, experience of manager and access to market in the study area at different levels of significance. Furthermore, the AE of micro level enterprises were statistically and significantly influenced by number of employee and gender of manager at different levels of significance. Finally, the AE of small level enterprises were statistically and significantly affected by age of enterprises, number of employee, experience of manager and access to credit in the study area at different levels of significance in the study area at different levels of significance. Generally, there is no single policy and strategy that can be recommended to improve the AE as well as to limit their determinant factors. Hence, the findings of this study unveil the need for implementing different policies and strategies that separately target and address the enterprises AE and their determinant factors.

Pages: 49-59 | Views: 390 | Downloads: 153

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