Micro Econometric Analysis of Challenges and Prospects

Industrialization can be the tool to alleviate poverty and macroeconomic problems as well as fostering sustainable economic development in developing nations. This study has employed a descriptive and numerical analysis of primary data by using a simplified sample size formula (115 samples from participant investors but only 101 samples are accepted) with a stratified sampling technique then making them in a homogeneous strata as per their project implementation status (taking random samples from each strata as per ratios) and secondary data (only for descriptive part) to identify the challenges and prospects of private investors and the government in the industry zones as well as determinants of private investment in the industry zones within a scope of Bahir dar city. Based on logistic regression model, different tests have detected the significances of the explanatory variables and the model adequacy. The empirical results show that domestic market, return to capital, free market without restriction, infrastructure accessibility, credit accessibility, political stability and Bureaucracy of the concerned organs have a positive relationship to private investment.