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.Ethiopia

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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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    THE NEXUS BETWEEN COFFEE EXPORTAND ECONOMIC GROWTH IN ETHIOPIA: EMPERICAL ANALYSIS
    (WOLKITE UNIVERSITY, 2019-06) AHMYE DEREJE KIBRET,
    The country has taken different measures to diversify and increase the contribution of coffee export to economic growth such as; export trade duty incentive scheme, export credit guarantees scheme and foreign exchange retention scheme to those wholly engaged in supplying their products to foreign markets. This paper investigated the relationship between coffee export and economic growth of Ethiopia, for the period 1974- 2017G.C.Despite the incentives taken by the country, the export sector has depended on a few agricultural products mainly coffee, oil seeds and pulses which are characterized by fluctuations in quantity, price and have low competitiveness on the world market. The objective of the study was to assess the trend and relationship of coffee exports on economic growth of Ethiopia over the last forty-three years by looking at the existence of long run relationship between coffee export and economic growth. The speed of adjustment in the long run and the existence of causality between the coffee export and economic growth. The analysis was done using co-integration model, Error correction model and Granger causality model. The findings of the study showed that Coffee export has a positive and significant relationship with economic growth. On the other hand, the causality relationship found that there is uni-directional relationship between coffee export and economic growth that means coffee does granger cause of RGDP. Finally, CUMSUM test confirms the long-run relationships between the variables and also shows the stability of the coefficients. Based on the findings, it is recommended that policies aimed at increasing the productivity and quality of this coffee production should be implemented. Also additional value should be added to them before exporting that means the roasted coffee and other things can be added. When this is done, it will lead to a higher rate of economic growth in Ethiopia.