Development Economics

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Browsing Development Economics by Author "Berhanu Dana (PhD)"

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    The Effect of Education on Economic Growth in Ethiopia
    (Addis Ababa University, 2024-06) Dawit Belemo; Berhanu Dana (PhD)
    Ethiopia, a nation with great potential, faces an important challenge: a large portion of the workforce lacks necessary skills. This study aims to analyze the impact of education on economic growth in Ethiopia, focusing on how enrollment in pre-primary, primary, secondary, and tertiary education, along with government spending on education, influence Gross Domestic Product (GDP). Using quantitative data analysis on Ethiopia's data sets from 2000-2023, this study seeks to uncover the individual and combined effects of education variables as independent variables and GDP as the dependent variable. The study employs a time series model analysis utilizing secondary data from reputable sources like the Ministry of Education of Ethiopia and the World Bank to examine the relationship between education and economic growth in Ethiopia, while accounting for other factors that may impact economic growth. The result of this study analysis shows pre-primary and primary enrollment was found to have a negative connection to GDP. This suggests that just increasing the numbers at these levels doesn't directly lead to economic growth, possibly due to issues with education quality, infrastructure, or other social and economic factors. In contrast, secondary enrollment, tertiary enrollment, and government education spending exhibited a positive relationship with GDP. This study highlights the importance of education and its potential to drive economic development in Ethiopia. By investigating the link between education and economic growth, this study aims to contribute to a better understanding of the factors influencing productivity in the country. Through a detailed analysis of empirical data, the study will seek to provide insights into the role of education in fostering economic growth and propose recommendations for policy interventions. Key words: Skills, Government Spending, Productivity, Development etc.