A study commissioned by Addis Chamber has tried to thoroughly explore the underlying factors affecting the local goods, labor and financial markets.
The market efficiency is directly related to the market factors and the nature of consumer prices.
According to the study, a strong institutional framework, agricultural productivity , competitive financial actors are determinant factors for an efficient market to prevail in the Ethiopian context.
Accordingly, weak regulatory system on the market chain , which gave rise to the unfair increment of consumer prices and ultimately contributed to the unprecedented inflation.
According the world Bank assumption, market efficiency of a country is primarily gaged by the price stability of that country.
Ethiopia ‘s rank in the global goods market efficacy index is 150th and found unsatisfactory.
Inflation is also another factor to undermine the commodity market.
The higher inflation , the more difficult for country to perform in the international markets.
The proliferation of parallel market is also contributing to the inefficiency of commodity market .
According to the research findings, the rural-urban migration , absence of the minimum wage and political instability are the major causes for the weak labor market we are having today.
The country’s labor market inefficiency stands between 3 and 4, that is lower when compared to other countries.
The mismatch in labor –employment relation , the rigidity in employment , which is between 20and 30, continued brain drain, averaged 2.6, that is an indication that the local job market does not attract educated people.
Therefore the research report has recommended among other things , the need to critical revision of laws, regulation and policies related to goods, finance and labor markets by the government.
Private business companies have to also work hard in ensuring competency and professionalism in corporate leadership.
Several intervention were made by the audience, to which explanations were given from the resource persons.