Browsing by Author "Belina, Merga (PhD)"

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    Some Economic Factors Associated With Economic Growth of Ethiopia
    (Addis Ababa University, 2020-07-07) Girma, Melkamu; Belina, Merga (PhD)
    This study aims to identify some economic factors associated with the economic growth of Ethiopia using annual data from 1975 to 2019. Although Gross Domestic Product (GDP) is one of the determinants of a country's economic growth, in this study the gross domestic product is considered as a measure of economic growth. This study investigates empirically the association of economic growth as measured by gross domestic product and variables such as gross domestic saving, imports, exports and the inflation rate. The study used the Johnson co-integration, Vector Error correction model (VECM), Granger causality tests to analyze long-run and short-run relationships between variables. The variables were non-stationary in the level but stationary after the first-difference. The results show that there is a significant association observed between import, inflation, export, gross domestic saving and real gross domestic product. Gross domestic saving granger causes imports. The real gross domestic product granger causes the inflation rate, exports, and domestic savings significantly. The results of ECM show that the model explains 61.2% of the variation in GDP. The policymakers should focus on promoting economic growth by revisiting policies to monitor inflation, export, and gross domestic saving since they are some of the strategies to boost the economic growth of Ethiopia.