Browsing by Author "Bulto, Wolde"

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    Ethiopia's Access to the WTO with Emphasis on Foreign Market Access
    (A.A.U, 2006-07) Bulto, Wolde; Estiphanos, Girma (Dr)
    The purpose of the thesis is to discuss and and analyze effects of WTO accession on Ethiopia’s economic policy making with particular emphasis on foreign market access for her exports 'That 'is its aim is to ask how important market access might be as an incentive for Ethiopia to join the WTO. Assessing Ethiopia's effective utilization of already granted p referential market access iS also another major objective addressed in the paper. The paper also discusses the costs and benefits to be expected by Ethiopia if she accedes [Q the WTO. We employ bod1 descriptive and empirical analysis approaches. T rends of Ethiopia's exports by major destinations, Ethiopia's utilization of preferential market access, and major consequences of policy changes as a result of joining the WTO arc among descriptively analyzed issues. For en1pirical analysis part, we employ the gravity model of international trade and include data on 31 of Ethiopia's trade panniers. The empirical analysis is done using two sample periods-(I 995-2003) and (2000-2003 )-to observe the effects of recent preferential market accesses-AGOA and EBA initiatives. T o enable us to draw sound conclusions from empirical results, three trade policy indicators are used. These are Heritage Foundation Index of distortions in international trade Economic Freedom of the World international trade index and trade dependency ratio of Ethiopia's trading partners. European Union (EU) member countries, COMESA member countries, Saudi Arabia, united States (US) and Japan are major importers of Ethiopian exporters. in addition to the Generalized System of Preferences (GSP), European Union g ranted Ethiopia preferential market access under EU-ASP economic partnership (Coronal! Agreement) and EBA initiatives. United state also offered preferential market access for Ethiopia under AGOA, However, it is found that Ethiopia’s utilization of these preferential market accesses IS not satJsf.1crorr. Without taking these preferential market accesses into account, our empirical estimates show that import barriers imposed by Ethiopia's trade partners do not play an important role in determining the volume of Ethiopian exports, Therefore, the results suggest that the most favored nation mechanism and putative improved market access might not be an important criterion for deciding Ethiopia's Accession to the WTO. Hence, he should demand long-enough periods both for accession process and transition period to address her supply side problems.
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    The Role of Commercial Banks Financial Intermediation on Economic Growth: Evidence from Ethiopia (1991-2020)
    (A.A.U, 2021-07) Bulto, Wolde; Alemu, Lakew (PhD)
    With the main objective to assess the financial intermediation roles of Ethiopian commercial Banks in promoting economic growth, the researcher has reviewed pertinent literatures and conceptualized the research and adapted the concept of financial intermediation. Accordingly, an appropriate model has been specified to predict economic growth from commercial Banks’ deposit, commercial Banks’ credit to private sector, broad money, investment, minimum deposit interest rate and average lending interest rate along the sample period of the last thirty years (1991-2020). Secondary data from various sources have been collected to analyze and evaluate the role of the Ethiopian commercial banks using STATA. F-statistics, R2, and adjusted R2 revealed that the regression model is robust enough to predict the dependent variable. Moreover, Augmented Dickey Fuller and Durbin-Watson Statistic tests indicated that the variables are stationery at zero degree level. The output of the multiple time series regression model revealed that financial intermediation roles of Ethiopian commercial banks in promoting economic growth had a mixed result. Ethiopian commercial banks deposit, credit to private sector, and broad money had a positive contribution although the co-efficient are statistically insignificant along the sample period. Minimum deposit interest rate had also a positive contribution. However, investment and lending interest rate had been found to be adversely but weakly affecting economic growth highlighting for further studies as to the prevalence of such relationship. Finally, in lieu of the findings, the importance of enhancing deposit mobilization through designing appropriate strategies both at national and bank level and enhancing prudent lending to improve financial intermediation roles of the banks have been recommended to further strengthen the Ethiopian commercial banks’ role of promoting economic growth in the country.