Factors Affecting Effectiveness of Budget Utilization in Case of Finance and Development Bureau of Dire Dawa Administration

Eyob Hailu; Netsanet Shiferaw; Tensay Hailu; Meka Fikadu; Yayehyirad Adamu

doi:10.20372/hjsdbe.v3i1.213

Authors

Eyob Hailu Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, P.O. Box: 1362, Dire Dawa, Ethiopia
Netsanet Shiferaw Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, P.O. Box: 1362, Dire Dawa, Ethiopia
Tensay Hailu Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, P.O. Box: 1362, Dire Dawa, Ethiopia
Meka Fikadu Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, P.O. Box: 1362, Dire Dawa, Ethiopia
Yayehyirad Adamu Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, P.O. Box: 1362, Dire Dawa, Ethiopia

DOI:

https://doi.org/10.20372/hjsdbe.v3i1.213

Keywords:

capital market, financial literacy, Infrastructure, Political stability, regulatory framework

Abstract

This study explores the challenges and opportunities in implementing a capital market in Ethiopia using both primary and secondary data. A mixed research approach was employed, with data collected through interviews and questionnaires. Out of 249 distributed questionnaires, 240 (96%) were successfully returned and analyzed. Simple random sampling was used for survey respondents, while purposive sampling identified key informants for interviews. The results highlight that regulatory frameworks, infrastructure, political stability, and financial literacy significantly influence the successful implementation of a capital market. Among these, a strong regulatory environment and well- developed infrastructure emerged as the most critical enablers. Political stability and public financial awareness were also important for building investor confidence and participation. The study recommends that Ethiopia strengthen its regulatory institutions, invest in infrastructure, enhance financial education, and maintain political stability. These steps are essential to create a conducive environment for a functional and sustainable capital market that supports economic growth.