Masters of Science

URI for this collectionhttps://rps.wku.edu.et/handle/987654321/9

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Start date: 2020Subject: search.filters.subject.ARDL

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    Economic globalization, Corruption and Economic Growth in East African Countries: Dynamic Panel Analysis
    (WOLKITE UNIVERSITY, 2022-03) TejuDeneke
    The study investigated the dynamic relationship among economic globalization, corruption and economic growth in selected of eight Eastern African countries using a dynamic panel approach over the period 1996–2019. In this study, the Kao co-integration test, ARDL, and Granger causality test were applied. The causality test revealed that in both the short and long-run period there is no causality between economic globalization, corruption, and economic growth. The findings of this study revealed that there is a positive long-run relationship between globalization and economic growth. Thus, one percent increase in the level of economic globalization increases economic growth by 0.19 percentage points. At the same time, there is a negative relationship between corruption and gross domestic product per capita. So, in the long run, one percent increase in corruption level decreases gross domestic product per capita by 0.02 percentages on average. The short run speed of adjustment coefficient of -0.5747 indicates that 57.47% of the short run adjustment is made within a year. Finally, the study recommends that East African countries should propose stricter strategies and policies at regional as well as national levels to create better world inter-linkages so as to speed up economic growth in the future. Also, minimizing the level of corruption in East Africa has a pivotal role in accelerating economic growth.
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    THE ROLE OF HUMAN CAPITAL IN ECONOMIC GROWTH ON SUB SAHARAN AFRICA
    (WOLKITE UNIVERSITY, 2021-02) TATEK EGZAE HAILE
    The study examines the role of human capital on economic growth in Sub Saharan Africa using the data obtained from World Data Indicator (WDI) and Penn World Tables (PWT), over the period 2001 to 2018 with the application of panel ARDL for estimation. The estimation result, confirms there is a long-run positive relationship between human capital and economic growth in Sub Saharan Africa (SSA). The study clearly shows that human capital (proxy by years of schooling and returns to education), Gross capital formation (GCF), Total labour force and Exports of goods and services have a positive significant impact on dependent variable GDP. The estimation results support the findings of the previous studies that human capital is positively related to GDP. However total unemployed labour force (UNE) has a negative significant impact on GDP. There is no evidence to show the causality between human capital and gross domestic product. However, there is bi directional causality between the total unemployed labour force and Gross domestic product. Based on these results, we recommend that both human capital and the total unemployed labour force should be required higher attention to sustain the economic growth of Sub Saharan African countries.