Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis

Tadele Melaku Chala

doi:doi:10.11648/j.sr.20251305.12

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Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis

Tadele Melaku Chala^*

Published in Science Research (Volume 13, Issue 5)

Received: 18 July 2025 Accepted: 27 August 2025 Published: 28 October 2025

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Abstract

The main objective of this study is to identify the determinants of implementing demonetization in micro and small-scale enterprises in Ethiopian in case of Addis Ababa city. To achieve this objective, this study employed explanatory research design and data was collected from across the population at one point in time. The researcher used primary sources of data which was collected via questionnaire. The descriptive and econometric data analysis, particularly the logistic regression analysis was used to test the relationship between explanatory and the dependent variables. The researcher selected a sample of 315 respondents using Stratified sampling method, The logistic regression result indicated that management factors, financial factors, political-legal factors, marketing factors, and technological factors have a significant and positive effect on the implementation of demonetization in Lideta sub city of Addis Ababa City. Finally, based on the findings of a study, the researcher suggests that all concerned bodies such as financial institutions, the media, government bodies and Micro and small enterprise owners should work toward expanding the means for to demonetization, since it has functions such as cost and time to save, increase sales volume, boost government tax collection, reduce illegal activities and black money prevalence, encourage technological advancements which contributes for the country’s economic growth as a whole. Creating awareness concerning currency demonetization and encouraging and increasing the usage of demonetization instruments, then the simple way that society is going to use is a digitalization.

Published in	Science Research (Volume 13, Issue 5)
DOI	10.11648/j.sr.20251305.12
Page(s)	136-147
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Determinants, Demonetization, Micro and Small Enterprise, Addis Ababa, Ethiopia

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APA Style

Chala, T. M. (2025). Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Science Research, 13(5), 136-147. https://doi.org/10.11648/j.sr.20251305.12

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ACS Style

Chala, T. M. Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Sci. Res. 2025, 13(5), 136-147. doi: 10.11648/j.sr.20251305.12

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AMA Style

Chala TM. Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Sci Res. 2025;13(5):136-147. doi: 10.11648/j.sr.20251305.12

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@article{10.11648/j.sr.20251305.12,
  author = {Tadele Melaku Chala},
  title = {Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis
},
  journal = {Science Research},
  volume = {13},
  number = {5},
  pages = {136-147},
  doi = {10.11648/j.sr.20251305.12},
  url = {https://doi.org/10.11648/j.sr.20251305.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sr.20251305.12},
  abstract = {The main objective of this study is to identify the determinants of implementing demonetization in micro and small-scale enterprises in Ethiopian in case of Addis Ababa city. To achieve this objective, this study employed explanatory research design and data was collected from across the population at one point in time. The researcher used primary sources of data which was collected via questionnaire. The descriptive and econometric data analysis, particularly the logistic regression analysis was used to test the relationship between explanatory and the dependent variables. The researcher selected a sample of 315 respondents using Stratified sampling method, The logistic regression result indicated that management factors, financial factors, political-legal factors, marketing factors, and technological factors have a significant and positive effect on the implementation of demonetization in Lideta sub city of Addis Ababa City. Finally, based on the findings of a study, the researcher suggests that all concerned bodies such as financial institutions, the media, government bodies and Micro and small enterprise owners should work toward expanding the means for to demonetization, since it has functions such as cost and time to save, increase sales volume, boost government tax collection, reduce illegal activities and black money prevalence, encourage technological advancements which contributes for the country’s economic growth as a whole. Creating awareness concerning currency demonetization and encouraging and increasing the usage of demonetization instruments, then the simple way that society is going to use is a digitalization.
},
 year = {2025}
}

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TY  - JOUR
T1  - Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis

AU  - Tadele Melaku Chala
Y1  - 2025/10/28
PY  - 2025
N1  - https://doi.org/10.11648/j.sr.20251305.12
DO  - 10.11648/j.sr.20251305.12
T2  - Science Research
JF  - Science Research
JO  - Science Research
SP  - 136
EP  - 147
PB  - Science Publishing Group
SN  - 2329-0927
UR  - https://doi.org/10.11648/j.sr.20251305.12
AB  - The main objective of this study is to identify the determinants of implementing demonetization in micro and small-scale enterprises in Ethiopian in case of Addis Ababa city. To achieve this objective, this study employed explanatory research design and data was collected from across the population at one point in time. The researcher used primary sources of data which was collected via questionnaire. The descriptive and econometric data analysis, particularly the logistic regression analysis was used to test the relationship between explanatory and the dependent variables. The researcher selected a sample of 315 respondents using Stratified sampling method, The logistic regression result indicated that management factors, financial factors, political-legal factors, marketing factors, and technological factors have a significant and positive effect on the implementation of demonetization in Lideta sub city of Addis Ababa City. Finally, based on the findings of a study, the researcher suggests that all concerned bodies such as financial institutions, the media, government bodies and Micro and small enterprise owners should work toward expanding the means for to demonetization, since it has functions such as cost and time to save, increase sales volume, boost government tax collection, reduce illegal activities and black money prevalence, encourage technological advancements which contributes for the country’s economic growth as a whole. Creating awareness concerning currency demonetization and encouraging and increasing the usage of demonetization instruments, then the simple way that society is going to use is a digitalization.

VL  - 13
IS  - 5
ER  -

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Tadele Melaku Chala

Department of Economics, Ambo University, Ambo, Ethiopia

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http://orcid.org/0000-0001-5694-7322

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APA Style

Chala, T. M. (2025). Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Science Research, 13(5), 136-147. https://doi.org/10.11648/j.sr.20251305.12

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ACS Style

Chala, T. M. Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Sci. Res. 2025, 13(5), 136-147. doi: 10.11648/j.sr.20251305.12

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AMA Style

Chala TM. Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis. Sci Res. 2025;13(5):136-147. doi: 10.11648/j.sr.20251305.12

Copy | Download

@article{10.11648/j.sr.20251305.12,
  author = {Tadele Melaku Chala},
  title = {Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis
},
  journal = {Science Research},
  volume = {13},
  number = {5},
  pages = {136-147},
  doi = {10.11648/j.sr.20251305.12},
  url = {https://doi.org/10.11648/j.sr.20251305.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sr.20251305.12},
  abstract = {The main objective of this study is to identify the determinants of implementing demonetization in micro and small-scale enterprises in Ethiopian in case of Addis Ababa city. To achieve this objective, this study employed explanatory research design and data was collected from across the population at one point in time. The researcher used primary sources of data which was collected via questionnaire. The descriptive and econometric data analysis, particularly the logistic regression analysis was used to test the relationship between explanatory and the dependent variables. The researcher selected a sample of 315 respondents using Stratified sampling method, The logistic regression result indicated that management factors, financial factors, political-legal factors, marketing factors, and technological factors have a significant and positive effect on the implementation of demonetization in Lideta sub city of Addis Ababa City. Finally, based on the findings of a study, the researcher suggests that all concerned bodies such as financial institutions, the media, government bodies and Micro and small enterprise owners should work toward expanding the means for to demonetization, since it has functions such as cost and time to save, increase sales volume, boost government tax collection, reduce illegal activities and black money prevalence, encourage technological advancements which contributes for the country’s economic growth as a whole. Creating awareness concerning currency demonetization and encouraging and increasing the usage of demonetization instruments, then the simple way that society is going to use is a digitalization.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Demonetization and Its Determinants in the Financial Markets of Ethiopia: An Economic Policy Analysis

AU  - Tadele Melaku Chala
Y1  - 2025/10/28
PY  - 2025
N1  - https://doi.org/10.11648/j.sr.20251305.12
DO  - 10.11648/j.sr.20251305.12
T2  - Science Research
JF  - Science Research
JO  - Science Research
SP  - 136
EP  - 147
PB  - Science Publishing Group
SN  - 2329-0927
UR  - https://doi.org/10.11648/j.sr.20251305.12
AB  - The main objective of this study is to identify the determinants of implementing demonetization in micro and small-scale enterprises in Ethiopian in case of Addis Ababa city. To achieve this objective, this study employed explanatory research design and data was collected from across the population at one point in time. The researcher used primary sources of data which was collected via questionnaire. The descriptive and econometric data analysis, particularly the logistic regression analysis was used to test the relationship between explanatory and the dependent variables. The researcher selected a sample of 315 respondents using Stratified sampling method, The logistic regression result indicated that management factors, financial factors, political-legal factors, marketing factors, and technological factors have a significant and positive effect on the implementation of demonetization in Lideta sub city of Addis Ababa City. Finally, based on the findings of a study, the researcher suggests that all concerned bodies such as financial institutions, the media, government bodies and Micro and small enterprise owners should work toward expanding the means for to demonetization, since it has functions such as cost and time to save, increase sales volume, boost government tax collection, reduce illegal activities and black money prevalence, encourage technological advancements which contributes for the country’s economic growth as a whole. Creating awareness concerning currency demonetization and encouraging and increasing the usage of demonetization instruments, then the simple way that society is going to use is a digitalization.

VL  - 13
IS  - 5
ER  -

Copy | Download