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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/1011

Title: THE RELATIONSHIP BETWEEN IMPORT AND GDP GROWTH IN ETHIOPIA: An Empirical Analysis
Authors: SEWASEW, PAWLOS
Advisors: Dr. Gebrehiwot Ageba
Copyright: 2002
Date Added: 9-May-2008
Publisher: Addis Ababa University
Abstract: In this study, the relationship between import and GDP growth, and the contribution of imported intermediate and capital goods to economic growth during the period 1960/61- 1999/2000 in Ethiopia is studied. Cointegration and error correction mechanisms are used so as to separate the long run and short run relationship between import and GDP. The effect of imported intermediate and capital goods on economic growth (measured by real GDP) is also studied using the same procedure. The estimated cointegrating vectors using Johansen’s cointegrating approach indicates that the long run elasticity of imports with respect to real GDP is positive but it is insignificant at 5 percent level of significance. On the other hand, real international reserve is found to affect imports positively and significantly. However, the short run elasticity of imports with respect to real GDP is positive and significant. The policy implication of the short run high-income elasticity of imports is that policies of aggregate demand or stabilization may not improve the balance of payment position. The results of the estimation of imported intermediate and capital goods on economic growth indicate that in the long run imported intermediate goods positively and significantly affect real GDP. However, in the short run, the change in imported intermediate goods before one year has a positive and significant effect on the change in current real GDP.
Description: A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF THE ADDIS ABABA UNIVERSITY IN PARTIAL FULFILIMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF SCIENCE (IN ECONOMIC POLICY ANALYSIS)
URI: http://hdl.handle.net/123456789/1011
Appears in:Thesis - Economics

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