College of Bussines and Economics

URI for this communityhttps://rps.wku.edu.et/handle/123456789/45798

College of Bussines and Economics

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2019 - 20202

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Subject: search.filters.subject., Granger Causality,

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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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    ENERGY EFFICIENCY AND ECONOMIC GROWTH IN ETHIOPIA TIME SERIES ANALYSIS
    (WOLKITE UNIVERSITY, 2020-08) DESALEGN DEBEBE SORATO
    We have limited studies on the relationship between energy efficiency and economic growth in the context of sub Saharan Africa where efficient energy supply is limited although energy is vital to meet sustainable development goals. Considering this, this study investigates the long run relationship between energy efficiency and the economic growth in Ethiopia for the period 1974/75 to 2017/18. Multivariate time series analysis was employed. The result indicated that the existence of unidirectional causality running from economic growth to energy efficiency. Similarly, for the sectoral share of GDP, the unidirectional causality runs from energy efficiency to industry share while as bidirectional causality runs from service shares to energy efficiency and vice versa. The speed of adjustment coefficient indicates that the previous period disequilibrium adjusts to equilibrium at the rate of 59.2% annually. Impulse response function specifies responsiveness of the energy efficiency in the model to the shocks in the error term indicated that economic growth has significant influence while variance decomposition measured the strength of causality relationship showed high causal effect to energy efficiency. The overall result showed that increased economic growth has a strong cause of energy efficiency in Ethiopia. The government needs to give more importance to sustain economic growth so that both the wellbeing and the energy efficiency of the nation are improved.