This paper investigates the impact of foreign aid on economic growth in Ethiopia using time series data for the period 1974 to 2011. Following the most recent literatures, the paper examines whether aid effectiveness is conditional on stable macroeconomic policy environment using the Autoregressive Distributed Lag (ARDL) approach to co-integration proposed by Pesaran and Shin [1997]. Results provide that the negative coefficient of separate foreign aid in regression model shows aid has negative impact on economic growth, but the positive coefficient of aid policy index interaction shows that aid has positively contributed to economic growth in Ethiopia if supplemented with stable macroeconomic policy environment.

This paper was conducted to estimate technical efficiency in milk production of dairy farmers in central zone of Tigray National Regional State using stochastic frontier production function approach. Cross-sectional data collected from 163 dairy farmer households was used in the analysis. The result shows that the average technical efficiency of sampled dairy farmer households is about 63.7%. It also shows that labor input by households and average amount of daily cost of crop residue/byproduct do not influence amount of milk produced when stochastic frontier and inefficiency effects are estimated in combination. The estimates of coefficients of other explanatory variables of stochastic frontier production function (i.e. number of lactating cows, average daily cost of purchased supplements, average daily health/veterinary expenditure and average amount of water consumed daily) are found to influence amount of milk produced positively. From the explanatory variables incorporated in inefficiency model sex of household head, extension contact and households off farm income do not influence inefficiency of dairy farmer households while age of household head, years of education of the household head and cattle size are found to influence inefficiency of dairy farmer households negatively. Age squared of household head and household sizes influence inefficiency of dairy farmer households positively. Thus, it can be concluded that by improving dairy farmers' access to education, family planning program and improving bureaucratic environment in providing extension services it is possible to increase amount of milk produced.

This study was conducted to estimate the technical efficiency of micro and small-scale manufacturing enterprises in Selected Towns of Jimma Zone, Oromia National Regional State by using the Stochastic Frontier Approach. The analysis used Cross-sectional data which was collected from 343 Micro and small-scale manufacturing enterprises in 2018. The finding shows the mean technical efficiency of sampled Micro and Small-Scale Manufacturing Enterprises is about 54.8% and output value-added is positively affected by capital input and raw material, but negatively affected by labor input. The finding from the inefficiency model indicates that technical inefficiency of sampled Micro and Small-Scale Manufacturing Enterprises is negatively affected by the amount of finance used for initial investment expenses; lower for enterprises which received land from the government, participate only in “Ekub”, participate in both “Ekub” and “Edir”. However, seasonal change in demand for a product is found to make technical inefficiency of enterprises higher. Thus, by improving Micro and Small-Scale Manufacturing Enterprises access to land, market, sufficient