Factors Affecting Effective Utilization Of Natural Resources: A Case Study In West Shoa Zone Ambo District, Oromia

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