Department of Economics
URI for this collectionhttps://rps.wku.edu.et/handle/123456789/45802
Department of Economics
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Item SOCIAL SECTOR DEVELOPMENT AND ECONOMIC GROWTH IN ETHIOPIA(WOLKITE UNIVERSITY, 2020-01) MITIKU RIKITA REGESSAThis study examines the causal relationship between social development and economic growth in Ethiopia using time series data ovThis study examines the causal relationship between social development and economic growth in Ethiopia using time series data over the period 1974/75 to 2017/2018. The study adopted modern time series econometric techniques such as unit root test, lag selection criteria, Johansen co integration test, VECM, and granger causality, Wald test, impulse test, and variance decomposition. In the descriptive part of the analysis the study found that both the Dergue and EPRDF social development has been growing throughout the years under consideration. The found that in the long run, education expenditure, health expenditure, culture expenditure, social welfare expenditure, labor force and trade openness have positive and significant effect on economic growth in Ethiopia. In the long run social development has positive significant effect on economic growth in Ethiopia. In the short run, the empirical revels that one year lagged value of Labor force and Social Welfare is significant in affecting current growth in real GDP. The short run speed of adjustment coefficient of 0.5445 indicates that 54.45% of the short run adjustment made within a year. Empirical findings shows in both long run and short run, there is no causality running from either economic growth to social development or social development to economic growth in Ethiopia. Looking at the causality between components of SDU and Economic growth; there is no short run causality running from LNRGDP to LNHEAL, LNEDUC, and LNCULTU; vice versa is not true. Whereas there is a unidirectional causality running from LNWELFS to LNRGDP and vise verse is not true. In the long run, there is unidirectional causality running from LNRGDP to LNCULT, LNHEAL, and LNWELFS. The impulse analysis shows that expenditure on health and education has permanent effect on economic growth in Ethiopia in the ten years. The results of the variance decomposition indicate that a greater proportion of the variation in LNRGDP is due to its own innovations. Finally, the researcher recommend that government should improve the education quality, health of societies, encouragement of social welfare, credibility of societies culture, and encouragement of trade openness, and yet investment on social sector development does not reach to the poor section of the people , and government should re-examine its social development strategy.er the period 1974/75 to 2017/2018. The study adopted modern time series econometric techniques such as unit root test, lag selection criteria, Johansen co integration test, VECM, and granger causality, Wald test, impulse test, and variance decomposition. In the descriptive part of the analysis the study found that both the Dergue and EPRDF social development has been growing throughout the years under consideration. The found that in the long run, education expenditure, health expenditure, culture expenditure, social welfare expenditure, labor force and trade openness have positive and significant effect on economic growth in Ethiopia. In the long run social development has positive significant effect on economic growth in Ethiopia. In the short run, the empirical revels that one year lagged value of Labor force and Social Welfare is significant in affecting current growth in real GDP. The short run speed of adjustment coefficient of 0.5445 indicates that 54.45% of the short run adjustment made within a year. Empirical findings shows in both long run and short run, there is no causality running from either economic growth to social development or social development to economic growth in Ethiopia. Looking at the causality between components of SDU and Economic growth; there is no short run causality running from LNRGDP to LNHEAL, LNEDUC, and LNCULTU; vice versa is not true. Whereas there is a unidirectional causality running from LNWELFS to LNRGDP and vise verse is not true. In the long run, there is unidirectional causality running from LNRGDP to LNCULT, LNHEAL, and LNWELFS. The impulse analysis shows that expenditure on health and education has permanent effect on economic growth in Ethiopia in the ten years. The results of the variance decomposition indicate that a greater proportion of the variation in LNRGDP is due to its own innovations. Finally, the researcher recommend that government should improve the education quality, health of societies, encouragement of social welfare, credibility of societies culture, and encouragement of trade openness, and yet investment on social sector development does not reach to the poor section of the people , and government should re-examine its social development strategy.Item THE QUALITY OF LIFE AND ECONOMIC GROWTH IN ETHIOPIA (Auto regressive Distributive Lag Approach)(2021-06) MERGA TAYE LETAThe objective of the study is to examine the nexus between economic growth and quality of life in The objective of the study is to examine the nexus between economic growth and quality of life in Ethiopia by using annual time series data over the period 1990-2020 which obtained from World Bank National Bank of Ethiopia Central statistics Agency and National planning& Economic development commission to achieve the stated objective of the study. The researcher used Per Capita Growth Domestic Product as independent variable and privet consumption which peroxides Quality of life, Growth Enrollment ratio, Urbanization Rate, growth Capital Formation and labor force participation Rate are as the dependent variables. The study applied autoregressive distributed lag (ARDL) approach to examine the nexus among the stated variable. Granger causality test approach was applied to examine the directions of causality between variables. From the result of Auto Regressive Distributive Lag, there is positive association between Per Capita Growth Domestic Product and Quality Of Life as well as positive association and statistically significant between Per Capita Growth Domestic Product and Urbanization Rate and Negative association between Per Capita Growth Domestic Product and Growth Enrollment ratio Bounds co integration test shows that there is significant relationship between Per capital Growth Domestic product and Quality of Life in the short and long run. Error correction model also identified the last period deviation from long run Equilibrium is highly adjustable because CointEq(-1)* -0.962545. Based on the result of the study Ethiopia by using annual time series data over the period 1990-2020 which obtained from World Bank National Bank of Ethiopia Central statistics Agency and National planning& Economic development commission to achieve the stated objective of the study. The researcher used Per Capita Growth Domestic Product as independent variable and privet consumption which peroxides Quality of life, Growth Enrollment ratio, Urbanization Rate, growth Capital Formation and labor force participation Rate are as the dependent variables. The study applied autoregressive distributed lag (ARDL) approach to examine the nexus among the stated variable. Granger causality test approach was applied to examine the directions of causality between variables. From the result of Auto Regressive Distributive Lag, there is positive association between Per Capita Growth Domestic Product and Quality Of Life as well as positive association and statistically significant between Per Capita Growth Domestic Product and Urbanization Rate and Negative association between Per Capita Growth Domestic Product and Growth Enrollment ratio Bounds co integration test shows that there is significant relationship between Per capital Growth Domestic product and Quality of Life in the short and long run. Error correction model also identified the last period deviation from long run Equilibrium is highly adjustable because CointEq(-1)* -0.962545. Based on the result of the study