College of Bussines and Economics
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College of Bussines and Economics
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Item INTERNATIONAL REMITTANCE AND ECONOMIC GROWTH IN ETHIOPIA: AN AUTOREGRESSIVE DISTRIBUTED LAG APPROACH(WOLKITE UNIVERSITY, 2018-06) ABDURAHMAN AGIROHaving 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.Item ENERGY EFFICIENCY AND ECONOMIC GROWTH IN ETHIOPIA TIME SERIES ANALYSIS(WOLKITE UNIVERSITY, 2020-08) DESALEGN DEBEBE SORATO, DESALEGNWe 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.Item 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 rateItem FINANCIAL DEVELOPMENT SECTOR AND ECONOMIC GROWTH IN ETHIOPIA(2021-07) ABDO HASSEN MOSSA,The finance growth nexus, though it is well-entrenched in the academic discourse and no consensus is reached, still begs for updating through revisiting the issue using recent data. With this motivation, this study has attempted to achieve the objective: examining the financial sector development and economic growth in Ethiopia and their causality based on the time series data set covering the period of 1974/75 to 2019/20 in Ethiopia, using Eview9 software. From a methodological perspective, unit root tests, Johansson’s co integration test, vector error-correction model, impulse response analysis, variance decomposition analysis and granger causality tests were utilized. The finding of this study shows that financial development sector, gross capital formation /investment/, saving and government expenditure have a positive and statistically significant relationship with GDP in the long run. In the short run, the study confirms that one year lagged value of financial development and savings are positive and statistically significant affecting current growth of RGDP. The study also found that there is no causality running from either financial development sector to economic growth or from economic growth to financial development both in the long run and short run. The short run speed of adjustment coefficient of -0.247 indicates that 24.7 % of the short run adjustment made within a year. Finally, the study recommends the policy towards the path of a sustainable growth and the effects of financial sector on economic growth must be taken into consideration.