DETERMINANTS OF PRIVATE INVESTMENT PERFORMANCE: IN A CASE OF GONDAR CITY ADMINISTRATION

Abstract

This study focuses on private investment performance in Gondar City Administration, aiming to assess the determinants Affecting such performance. Employing a descriptive and explanatory research design with a mixed research approach, the researcher utilized questionnaires for primary data collection. A total of 253 questionnaires were distributed, achieving an impressive response rate of 94.9%, with 240 deemed usable for the study. Data analysis was conducted using the Statistical Package for Social Science (SPSS) version 27. Descriptive statistics such as frequency, mean, standard deviation, and percentage were employed for a comprehensive analysis. For inferential statistical analysis, correlation and multiple regression analyses were conducted to identify the major factors influencing private investment performance in the study area. The correlation results revealed a positive and significant association between all independent variables and private investment performance. The regression analysis further demonstrated that Infrastructure Availability, Foreign Exchange, Credit Availability, Legal and Administrative Factors, and Raw Material Availability collectively predict 77.4% of investment performance. All factors has a significant positive effects on private investment performance (0.302, 0.354, 0.168, 0.140, and 0.260, respectively), with significance levels of .000. The study recommended the prioritization of favorable conditions in infrastructure, foreign exchange, credit accessibility, legal/administrative factors, and raw material availability to enhance robust private investment outcomes in Gondar City Administration.