Browsing by Author "Gebeyehu, Worku (PhD)"

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    An Investigation of the Macroeconomic Determinants of Private Investment in Ethiopia: Co-integarted var Approach
    (Addis Ababa University, 2016-06) Esayas, Mamo; Gebeyehu, Worku (PhD)
    This study was conducted with the main objective of investigating and analyzing the macroeconomic determinants of private investment in Ethiopia over the period from 1974/75-2013/14. The study employed Vector error Correction model to estimate the long run relationship of the variables. The regression results shows that real physical infrastructure investment, real social infrastructure investment , trade openness and bank credit have significant positive long run effect on private investment, where as inflation has significant negative long-run effect. In the short run economic growth have significant positive impact on the real private investment. The result of the regression suggests the crowding in effect of the real physical infrastructure investment and real social infrastructure investment on real private investment in Ethiopia in the long run. Moreover, the result of the regression confirm the validity of accelerator model which states investment is the linear proportion of output in the context of Ethiopia. Thus require the need to extend the growth of national output to raise the growth of private investment. Hence, as policy implication the study recommends government provision of fertile macroeconomic and investment climate. Moreover, investment in physical and social infrastructure in line with other supplementary reforms to enable the private investment to contribute more to the gross domestic product should need to be extended. Key words : private investment , vector error correction model , economic growth
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    Political and Economic Determinants of Capital Flight: Panel Data Analysis from East African Countries
    (Addis Ababa University, 2017-06) Mekonnen, Bekele; Gebeyehu, Worku (PhD)
    Capital flight has been a problem among many developing countries. It is more severe among African countries. Given their smaller resource base and limited market, the problem of capital flight justifies a serious attention particularly among East African Economies. Albeit most of these countries are in the ranking list of huge volume of capital flight east Africa has never been considered as a sub- region in the capital related studies. Cognizant of this, this paper intends to contribute to this body of knowledge by filling a noticeable gap. This paper examined the determinant of capital flight from 9 eastern Africa countries for the period 2006 - 2015. The linear regression panel corrected standard errors model was employed and found that absence of political freedom and good institutions to have a positive and significant effect for the prevalence of capital flight. Capital flight is also affected negatively by GDP growth; credit availability and exchange rate. Exchange rate has shown unexpected sign implying the exchange rate can have negative impact on the capital flight through its effect on current account whose value minimize the residual in the formulation of capital flight. Further budget deficit and level of debt have positive relationship with capital flight. The study forwards considerations for the policy makers the need to have easier access for credit facilities for the private sector accelerate economic growth, to devise a mechanism to widen the tax base to finance budget deficit and establish constructive institutions enhancing political freedom and ensuring political and civil liberties of citizens in order to curb current aggravated level of capital flight