Impact of Private Manufacturing Investment on Local Economy: A Case Study at Mekelle zone

Good private manufacturing investment is a basic for the whole economy. However, many private investors in LDC‟s are not participated in manufacturing sector. Since Ethiopia is one of these LDC‟s its Economy depends on Agriculture. Therefore, private manufacturing investment is essential for the local as well as for the whole economy. The study used panel data collected from 205 respondents randomly selected sampled of private investors and workers of private firms from Mekelle city. The survey responses were analyzed through descriptive and econometric analysis using logit and multivariable regression model of analysis. Therefore, this study aims to determine the impact of private manufacturing investment on the local economy at Mekelle town. Data collected has been analyzed using both descriptive and econometric data analysis techniques. For the econometric analysis, this study employed the logistic regression model to analyze the dummy variables. And the multivariable regression model for the other variables that were out of the dummy variables. The descriptive technique also used for the characteristic and demographic of the respondents. The study concluded that the impact of private manufacturing investment has positive impact on the local economy and it may also lay some ground for further study related to the area.