Abstract:
The purpose of this study was to identify the factors affecting effective utilization of natural
resource in Ambo district. Data was collected by self-administered structured questionnaire from
Ambo District public sectors and enterprises (cooperatives) which are involved in the works of
natural resource related activities. The study employed both simple random sampling and
stratifies probability sampling techniques. Totally 291 questionnaires were properly filled and
returned for analysis showing 91.22% response rate. The collected data were analyzed using
STATA software v.13. The result of the study illustrated that five input variables- Environmental
Factors, Institutional factors, financial factors, Socio-economic factors and Human factors
accounted for 41.52 % of the variation in utilization of natural resource. The findings of the
Logistic regression analysis revealed that Human factor, financial factors, socio political
factors, institutional factors and environmental factors have positive and significant effect on
utilization of natural resource . Therefore the study recommends that to improve effective
utilization of natural resource in the study area, west Shoa zone office and police makers should
focus on the identified determinant factors
