Browsing by Author "Endale Kefyalew"

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    The Effect of Defense Expenditure on Economic Growth in the Sub-Saharan African Countries: Panel Data Evidence
    (Addis Ababa University, 2007-07) Endale Kefyalew; Kedir Abbi
    This paper is a contribution to the debate on the nexus between defense burden and economic growth in less-developed countries. It also aims to identify the determinants of defense burden. The study is based on 38 Sub-Saharan African countries over the period 1983-2002. Based on the Hausman (1978) test, random effect estimator model is selected and employed in the analysis. The empirical result shows that defense burden is destructive to real GDP growth. At sectoral level, its marginal effect on the value added growth of manufacturing and agriculture is significant and negative. These negative effects are especially high in the low income countries. Thus it is necessary to reduce the excessive and unproductive defense expenditure in the region to promote sustainable economic growth and to reduce the persistent poverty.
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    The Relationship Between Inflation and Value of Imports in Ethiopa: An Autoregressive Distributed Lag Approach
    (A.A.U, 2021-06) Tsedeke Henok; Endale Kefyalew
    Stable price is one of the main goals of any country and it’s considered by governments and policy makers and hence investigating the main cause of inflation is of great importance. Thus, this study aims to examine factors affecting inflation in Ethiopia with a focus on the role of import value of goods and services. An ARDL bound testing model was employed to investigate the relationship using a data covering the years 1981 to 2019. The results reveals that import value to GDP ratio and money growth increases inflation both in the short run and long run; lending interest has an increasing effect in short run but decreases inflation in the long run; official exchange rate, external debt to GDP ratio and growth rate of real GDP have a significant negative effect on general inflation in long run; Whereas external debt to GDP ratio has a negative and insignificant effect on general inflation in the short run. But, growth rate of real domestic product has a negative and significant effect on general inflation in short run. Finally, based on the estimation result, the researcher recommends the concerned body to reduce the severity of inflation in the country. The exchange rate policy should be implemented that will be favorable to reduce the cost of imported capital goods and the government should look inward for supplying of raw materials locally promotes investment in the area where the required raw materials are available locally.