MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

Individual assignment
Title: determinants of university undergraduate student’s academic performance (case of
Mekelle university business and Economics College).

Compiled by: Zenawi belay

Course title: Research methods for economics

Submitted to D.r Yemane michael

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 Table of Contents

Chapter one.................................................................................................................................................2
Introduction.................................................................................................................................................2
1.1. Back Ground of the Study............................................................................................................2
1.2. Statement of the problem.............................................................................................................3
1.3. Objective of the study..................................................................................................................5
1.3.1. General Objective................................................................................................................5
1.3.2. Specific Objectives..............................................................................................................5
1.4. Research hypothesis.....................................................................................................................5
1.5. Research methodology.................................................................................................................5
1.5.1. Sample size and sampling technique....................................................................................5
1.5.2. Data collection and type.......................................................................................................6
1.5.3. Model specification and Estimation Technique...................................................................6
1.6. Variable description.................................................................................................................7
1.7. Significance of the study..............................................................................................................8
1.8. Organization of the paper............................................................................................................8
Reference.....................................................................................................................................................9

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 Chapter one

Introduction

1.1. Back Ground of the Study

Over the last two decades the determinants of economic growth have attracted increasing
attention in both theoretical and applied research (Stern, 1991).

Theory of endogenous growth developed by Romer and Lucas has drawn attention to human
capital and innovation capacity. Since the term ‘human capital’ refers principally to workers’
acquisition of skills and know-how through education and training, the majority of studies have
measured the quality of human capital using proxies related to education. On these grounds, a
large number of studies have found evidence that an educated labor force is a key determinant of
economic growth (Romer, n.d.).

In developing countries government investment on higher education and its output in terms of
student’s good performance has been observed to be unequal with government expenditure. Poor
academic performance leads to the widely acclaimed fallen standard of education and issue of
poor academic performance of students has been much concern at all (Endalamaw Yigermal,
2017).

The issue of academic performance has received a considerable attention in many academic
programs (Mushtaq and Khan, 2012; Mutairi, 2011). In order to succeed students must place a
certain value on academic achievement (Soule, 2009). Hence, academic performance helps a
nation to adopt new technologies and innovation, due attention must give for students’ academic
performance (Mushtaq & Khan, 2012).

Students’ academic performance is directly linked with the social and economic development of
a country because the students’ performance (academic achievement) plays an important role in
producing graduates who will become great leaders and sources of manpower and thus support a
country’s economic and social development (gebrehiwot et al., 2016).

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1.2. Statement of the problem
(Ali, Haider, Munir, Khan & Ahmed, 2013) using linear regression model, correlation analysis,
and descriptive analysis, investigated that age, father/guardian social economic status and daily
study hours significantly contribute the academic performance of graduate students in Islamia
University of Bahawalpur Rahim, Pakistan.

In Ethiopia, Bitew, Asres, & Wolie, (2010) investigated that student related variables such as
previous academic background, tension, and student motivation are major factors to influence the
academic performance of the students. (W/giorgis & Mohammednur Awel, 2010) also revealed
the significant effect of student’s gender, national level entrance examination result and financial
constraint on students’ academic performance in Ethiopia.

Mersha, Bishaw & Tegegne, (2013), carried out their research on factors affecting female
student’s academic achievement at Bahirdar University. They take a sample of 600 students on
second year and above undergraduate female students and the result that they obtained shows
that academic achievement of female students is affected by student’s personal related factors
such as less ability to competent, tension, failing in love easily. University related factors such
as, influence of male students, lack of proper guidance, lack of proper reading place where
students use freely, influence from male teachers and youth from surrounding environment.

A study conducted by W/giorgis & Mohammednur Awel,(2010) investigated that student’s age,
gender, preparatory stream, student’s department choice and maternal educational background
found to affect his/her performance significantly in accounting ,PDM, economics department.
However, Educational background of parents and their socio economic status and students
transfer income were found to be insignificant determinants of academic performance by
conducting their research on the seven colleges of Mekelle University (gebrehiwot et al., 2016).
Hence, these research’s analyses the effect of factors across departments and at aggregated
department level, are taken few years ago and are few in number, this study will investigate
across year with in department and the researcher is going to conduct a research so as to yield
new findings and argue for or against previous findings.

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1.3. Objective of the study

1.3.1. General Objective

The general objective of the study is to investigate Factors that determine undergraduate
university student’s academic performance (case of Mekelle university business and Economics
College).

1.3.2. Specific Objectives

 To investigate the effect of student’s motive of employment on academic performance.
 To explore the effect of students’ recreational habit use on academic performance.
 To examine the effect of student’s former academic performance or background on
academic performance.
 To explore the effect of family income on students’ academic performance

1.4. Research hypothesis

 Students with high motive for employment are expected to perform better
 Students which read fiction for recreation (enjoyment) are expected to perform better than these
who watch film, football and have girlfriend.
 Student’s former academic performance background is expected to be positively related
with o academic performance.
 Family income is positively related students’ academic performance

1.5. Research methodology

1.5.1. Sample size and sampling technique

The study assumes each department as strata and sample will be selected from each stratum
using simple random sampling technique from 2nd and 3rd year students of 2019. Since
departments have different student size, the study will use proportional distribution of the sample
size to each stratum (department) and simple random sampling to respondents. The total 2 nd and
3rd year students of college of business and economics are 1283.using Yamane’s formula; the
study identifies 85 students from 2nd year and 84 from 3rd year with total of 169 respondents.

The formula used to determine sample size is:

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 ………………….. Yamane formula

Where, N= total population, n= sample size, e= the level of precision /Acceptable error, e = 5%
(0.05) level of precision. Based on the above formula and given our target population, our
sample size becomes 169.

1.5.2. Data collection and type

For the purpose of investigating the academic performance of students the study will use primary
data source, collected through questionnaires and secondary data from Mekelle university
Departments’ data base and student’s service center.

1.5.3. Model specification and Estimation Technique

Academic performance approximated in CGPA will be estimated against the explanatory
variables using Ordinary least square (OLS) to determine the value of parameters and estimate
the model. Therefore the structural equation is specified as:

CGPA = f (Academic Background, family income per month, motive of employment, Gender,
Recreational habit, study hour per day, age and alcohol taking habit).

CGPA = β0 + β1Academic Background+ β2family income per month+ β3motive of employment+

β4Gender, β5Recreational habit+ β6study hour per day+ β7age + β8alcohol taking habit+ ε

Where

β0 is intercept parameter or constant.

β1 is the coefficient of Academic Background

β2 is the coefficient of family income per month

β3 is the coefficient of motive of employment.

β4 is the coefficient of Gender. .

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β5 is the coefficient of Recreational habit

β6 is the coefficient of study hour per day

β7 is the coefficient of age

β8 is the coefficient of alcohol taking habit

ε is the coefficient of error term.

1.6. Variable description

List of variable Description Notation

Academic Background University entrance exam score of respondent UEEt
Family income Income per month of respondent Incf
motive of employment Respondents motive for employment MEL
Gender Sex of respondent Gender
Recreational habit Respondents habit to refresh them selves REH
study hour per day Respondents Study hour per day SHPD
Age Age of respondents Age
alcohol taking habit Respondents alcohol taking behavior ALtH

A. Academic background
Measures the former performance of students based on their university entrance exam result they
have. The academic background is approximated using Ethiopian university entrance exam.

B. Family income
It explains the effect of family income on the academic performance of students. The study
assumes students with high income background perform better than students of low income
family.

C. Motive of employment
Student’s motive to get a job after graduation and employers choice of employee based on
performance also affects students’ performance. Students with high motive perform better than
low motive. It is taken as dummy with these having motive to get a job and these do not have.

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D. Gender
Gender measures the effect of gender difference in academic performance. The study assumes
females perform less well than males in academics and male students perform better in
academic than females.

E. Recreational habit
Recreation habit explains how student’s recreational habit affects academic performance. The
study identifies four classifications for which students of business and Economics College used
to enjoy themselves. These are Reading books, playing and watching football, watching film and
having girlfriend.

F. Study hour per day

Students that allocate more study hour are expected to perform better.

G. Age
Age is also a factor which is expected to have significant effect in academic performance. The
researcher assumes as the age of students goes the ability of student’s analysis improves and
students able to perform well in education.

H. Alcoholic taking habit

It Measures the effect of taking alcoholic drug and chowing chat on the academic performance of
students. And the study assumes taking alcohol and chat negatively affects student academic
achievement.

1.7. Significance of the study

The research will provide blue print to universities and government the significant factors that
affect academic performance and give response and solution.

1.8. Organization of the paper

The paper is structured as follows. The following section (section two) summarizes in brief
Theoretical and empirical literature reviews will be presented. Section three presents the research
methodology used to investigate the relationship. Section four present the results of the OLS
estimation and associated tests and finally section five concludes and provides policy
recommendations.

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 Reference
Ali, S., Haider, Z., Munir, F., Khan, H., & Ahmed, A. (2013). Factors Contributing to the
Students Academic Performance: A Case Study of Islamia University Sub-Campus.

Bitew,T., Asres, S ,& Wolie, D.(2010). The Major Factors That Affect Academic Achievement
of DMU Students:

Endalamaw Yigermal, M. (2017). The Determinants of Academic Performance of Under

Graduate Students: In the Case of Arba Minch University Chamo Campus.

Fassil, E., Adem, G., Getahun, K., & Sileshi, A. (2018). Determinants of students vulnerability to
attrition in higher education: Evidence from Arba Minch University, Ethiopia.

gebrehiwot, desta, hailu, amare, kebede, & tefera. (2016). Factors affecting the academic
performance of female students at Mekelle University, Ethiopia.

Martha, K (2005). Factors Affecting Academic Performance of Undergraduate Students at

Uganda Christian University.

Mersha, y., Bishaw, A., & Tegegne, F. (2013). Factors Affecting Female Students’ Academic
Achievement at Bahir Dar University, Ethiopia.

Muhammedhussen, M. (2016). Determinants of Economics Students’ Academic Performance:

Case Study of Jimma University, Ethiopia.

Mushtaq, & Khan. (2012). Factors Affecting Students’ Academic Performance. Factors
Affecting Students’ Academic Performance.

Romer, D. (n.d.). Advanced macroeconomics.

Stern, N. (1991). The Determinants of Growth. The Economic Journal, 101(404), 122. doi:
10.2307/2233847

W/giorgis, T., & Mohammednur Awel, Y. (2010). Determinants of Student Attrition at College
of Business and Economics, Mekelle University: Econometric Investigation. Determinants Of

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Student Attrition At College Of Business And Economics, Mekelle University: Econometric
Investigation.

Wooldridge, J. (2011). econometric analysis of cross section and panel data. MIT.

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