Browsing by Author "Asamerew Dejenie"

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    The Impact of Population Growth on Ethiopian Economic Growth
    (Addis Ababa University, 2022-07) Asamerew Dejenie; Berhanu Denu (PhD)
    This study empirically investigates the impact of population growth on the economic performance of Ethiopia for the period 1991-2021. Demographic transition enables in creating policy environment that considers maximum advantage of the nation’s demographic potential. VECM model was used to investigate the relationship between the population growth and economic performance of the country. The result of the model shows that the impact of population is negative and significant and the problem associated with huge population growth is the flood of the newly workforce, its management and providing different facilities even basic needs become a challenge for the government and policy makers. To tackle this issue, this study incorporated unemployment rate and agricultural growth rate to the model so as to investigate the impact of population growth directly and indirectly on economic growth in Ethiopia. The result of the study shows that population growth has negatively and significantly contributed to economic development contrary to agriculture. Saving rate, trade openness and human capital are also positive and significant factors to economic growth in Ethiopia. Hence, the government is advised to effectively and efficiently utilize the abundant labor force and work hard to eradicate the prevailing high level of unemployment. Key words: Population growth, unemployment, economic growth, VECM, Ethiopia