The Misalignment between Accounting Education and Practice in Ethiopia: A Resource Dependence Perspective

Abstract

Employing the resource dependence theoretical perspective, this study examines the impact of importing accounting education from one source and accounting practice from another in the development of accounting in a developing country. The study is a case study of Ethiopia, an Eastern African country that has never been colonized, but the economic and social environments of which were significantly shaped by its dependence on Western countries for resources. Data was collected through interviews and archival analysis. Accounting education in Ethiopia was introduced by US academics and was modelled on the US accounting education system. On the other hand, British experts were the first to open public accounting practices; and the first Ethiopian professional accountants obtained British accounting qualification. Both trends continue to the present day. The findings suggest that the sourcing of accounting education and accounting practice from different countries has led to the misalignment of the two and has adversely impacted the development of accounting and restricted its contributions to the economic development of the country. The study contributes to developing countries accounting history literature. The study also has practical significance to those interested in enhancing the profile of the accounting profession in Ethiopia by highlighting the problems of unintegrated implementation of policies for accounting education and accounting practice. Recommendations for future research are provided.

Keywords: Accounting, accounting education, accounting practice, Ethiopia, developing countries, resource dependence theory

JEL Classification: M41