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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/770

Advisors: Dr .Girma Estifanos
Copyright: 2002
Date Added: 21-Apr-2008
Publisher: Addis Ababa University
Abstract: This study investigated the effect of exports on economic growth in Ethiopia for the period 1960/61-2000/01. The study aimed to review the policies undertaken by the different regimes in relation to export policies, and to empirically test the relationship between exports and economic growth using different techniques. In addition, attempts were also made to examine the supply (structural) constraints to export growth in Ethiopia. To test the export-economic growth relationship, in addition to using the frameworks that have been followed by most of the previous studies, an extension to the previous studies was made by introducing cointegration and error correction approaches in the regression analysis. Furthermore, a simultaneous equation model and the Granger causality test were conducted to examine the indirect effects of export on economic growth and to address a possible simultaneity problem that may arise because of the correlation between export and economic growth. The results from the cointegration and error correction models revealed that export significantly affected economic growth in the short run. In addition to its direct effect, export is also found to indirectly affect economic growth as evidenced from the simultaneous equation models. Furthermore, the causality test conducted indicated that causality runs from exports to economic growth. The key finding in this study is that export growth positively and significantly affected economic growth and the result is not sensitive to the methodologiesused.
Description: A thesis Submitted to the School of Graduate Studies of Addis Ababa University in partial fulfillment of the requirements for the Degree of Master of Science in Economics (Economic Policy Analysis)
URI: http://hdl.handle.net/123456789/770
Appears in:Thesis - Economics

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