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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Application and Interpretation of Probit Analysis in Identifying Factors Influencing Decision Making in Production in Small Scale Enterprises in Ethiopia
Author:Keleta, E.
Year:1991
Periodical:Eastern Africa Economic Review
Volume:7
Issue:1
Pages:39-44
Language:English
Geographic term:Ethiopia
Subjects:small enterprises
Development and Technology
Economics and Trade
Abstract:This paper discusses the Probit model and its usefulness to researchers and policymakers from less developed countries in analysing easily obtainable data. In the example considered, the objective is to predict the probability of a firm's decision to expand or not, given the explanatory variables. Data came from a survey of 263 small-scale enterprises in twelve towns of Ethiopia reported by the Handicrafts and Small Scale Industries Development Agency in 1980. The model was successful in identifying some of the variables influencing firms' decisions to expand production. In particular, these included supply-side constraints, such as the availability of power, raw materials, cash and credit. Bibliogr., notes, ref., sum.
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