Department of Economics

URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45802

Department of Economics

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End date: 2019Subject: search.filters.subject.Economic Growth,

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    INTERNATIONAL REMITTANCE AND ECONOMIC GROWTH IN ETHIOPIA: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH
    (WOLKITE UNIVERSITY, 2018-06) ABDURAHMAN AGIRO
    Having the general objective of investigating the relationship between international remittances and economic growth in Ethiopia, this study used an auto regressive distributed lag (ARDL) model or Bound Testing approach to co-integration. The data used is from Ethiopian economic association, national bank of Ethiopia and World Bank Development Indicators which spans from 1980 to 2016. The outcome of the study revealed that, both the long run and short run growth impact of international remittance during the study period is positive and significant. Apart from this, other growth determinant factors, such as real gross fixed capital formation, human capita and consumer price index are found to significantly and positively affecting growth in Ethiopia. Trade openness has found Negative and significantly impact economic growth. Moreover, the Granger Causality test has confirmed that there is a unidirectional causality which runs from remittance to output. The most important policy implication that comes out of this study is that the government as well as other concerned stakeholders should work on easing the remittance sending process and cost, so as to better extract the economic benefit of international remittance.
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    Private Commercial Banks and Economic Growth in Ethiopia: Panel Data Analysis
    (WOLKITE UNIVERSITY, 2019-01) Dereje Diriba
    The purpose this study is to investigate the role of private commercial banks on economic growth in Ethiopia, and their direction of causality for a period of 10 years from 2008-2017. The data was sourced from the National Bank of Ethiopia, Ministry of Finance and Economic Cooperation-MoFEC, Central Statistics Agency (CSA). To undertake this study, eight private commercial banks were purposively selected out of sixteen which currently operating in Ethiopian banking industry. In analyzing the relationship between private commercial banks and economic growth the study applied Unit root tests, Kao Residual co-integration test, and Granger causality test. Moreover, the study used both descriptive statistics and econometric analyses. The Random effect model was used for econometrics analysis. The study found that a positive and significant relationship among profits, loan and advance and labor force with economic growth whereas there is negative and a significant relationship between branch network and economic growth. Furthermore, the study found unidirectional causal relationship moving from loan and advance, and profit to economic growth while there is no causality between asset, deposit and RGDP. There is a bidirectional between branch network and economic growth. Finally, the policy makers and stakeholders should make policies to enhance the banking sector in Ethiopia because profits, loan and advances are significantly contributing in the economic growth of Ethiopia.
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    EXCHANGE RATE, NET EXPORT AND ECONOMIC GROWTH IN EAST AFRICAN COUNTRIES: PANEL DATA ANALYSIS
    (WOLKITE UNIVERSITY, 2018-06) AMSALU BICHINU AYALEW
    This paper examines an empirical investigation of exchange rate, net export and economic growth in east African countries. The study fully employing a strongly balanced panel data the period from 2000 to 2015/2016.The data set is collected from NBE, IMF and WB. The study employed Random effect model as confirmed by Hausman test.The study found that net export; real exchange rate, trade openness and expenditure of government are positive and significantly explained economic growth.The empirical investigation of in this study indicates that both exchange rate and net export are equally important and the advance issue of determining economic growth.The estimation result suggested that, a depreciation of exchange rate and the improvement of net export were improves economic growth and all types of import and exports, a result that is statistically significant and consistent with the standard economic theory. The policy recommendation of these countries should take emphasis and give more attention to improve more advancements of manufacturing product rather to devaluate exchange rate