Economics(PhD)

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Browsing Economics(PhD) by Author "Borje Johansson"

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    Industrialization of Economies with Low Manufacturing Base
    (Addis Ababa University, 2016-05) Atlaw Alemu; Borje Johansson
    The basic theme of the dissertation is placing structure of economies as an intermediate explanatory factor for attainment of sustained growth of low-income economies that are in transition from stagnant agricultural economy to modern economic growth. The dissertation sets out with conceptualization of a model applicable to structures of low income and under industrialized economies, and hypothesizes on the long term outcomes of these structures. Sustained growth is the result of a particular structure in which manufacturing growth drives economic growth. A structure where transaction services have expanded beyond certain levels stunts manufacturing. Empirical investigations were carried out to test the hypotheses on 35 countries that were low-income economies in 1970.The results provide support for centrality of manufacturing and for the retarding effect of non-optimal growth of transaction services on manufacturing growth.
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    The Main Determinants of Economic Growth in East Africa: A Panel Approach
    (Addis Ababa University, 2019-03) Urgaia, Rissa; Borje Johansson; Kristofer Mansson; Sisay, Regassa
    This study investigates the determinants of economic growth in East Africa using various types of econometric panel data models and panel wavelet time scaling analysis over the period 1975 ⎼2016. We extend the multivariate panel methods such as autoregressive distributed lags (ARDL) to the bivariate panel wavelet time scaling analyses in order to show the short–run, medium–and long–run effects. Thus the empirical results of multivariate long–run estimations by fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) as well as by random effects(RE) and ARDL(2,1,1,1) methods reveal that both financial sector development(FSD) and foreign direct investment(FDI) have positively significant effects on economic growth in the panel countries. While the vector autoregressive (VAR) model in the transmission channel indicates that human capital resources (HCR) is an important contribution to the development of physical capital stock (PCS) through gross national income (GNI) and vice versa, in the short–term. The bivariate estimations made by wavelet analysis using panel FMOLS shows that as FSD increases there is a decline in the real GDP growth in the medium–term but an increase in the long–term. In the meantime, the bivariate ARDL(1,1) analysis indicates both FDI and GDP growth rate has significantly positive contribution to each other and dynamic inter–temporal causal effects to one another in the short, medium and long–terms. Finally, the obtained results of accumulated responses of GNI to HCR shows that there is a positive significant in the medium–and long–terms but that of HCR to GNI significantly negative in the short–and medium– terms and positively significant in the long–term.