Browsing by Author "Gebeyehu Worku"

Now showing 1 - 4 of 4
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    The Determinants of Gross National Saving: The Case of Ethiopia
    (A.A.U, 2020-09) Aboma Belay; Gebeyehu Worku
    Saving is becoming a pervasive agenda as decreed in African Union Regional agenda and it is also part of global agenda as enacted in UN resolutions for the nations to develop sustainable finance for financing sustainable development. The objective of this paper was to investigate the determinants of gross national saving in Ethiopia using annual time series data from 1981-2019. The study used Autoregressive Distributed Lag (ARDL) modeling and bounds test for co-integration. Estimated results revealed that percapita income, current account balance and bilateral aid are found to have a statically significant positive effect on the saving rate, or gross national saving as a percentage of GDP in Ethiopia. Urban population growth rate however found to affect national saving negatively in the long run. On the other hand, deposit interest rate and inflation are found to be statistically insignificant effect on national saving rate in the long run. In the short run, current account balance is found to have a negative effect on the rate of gross national saving at 5% level of significance. These findings imply that creating an enabling environment for percapita income growth and expansion, improving current account balance (by stimulating exports and substituting imports),strengthening global-partnership for foreign-bilateral capital generation and other technical co-operation, and regulating population growth by speeding up demographic transition, controlling rapid urban growth through expansion of urban services to rural areas for inclusive growth, reducing poverty and improving the level of employment and reducing non-productive public expenditure and maintain macroeconomic stability in long run help to raise saving in Ethiopia.
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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
    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
    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
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    Technical Efficiency of Cereal Producing Farmers: A Comparative Analysis of Own-operators and Tenants (The Case of Ethiopia)
    (A.A.U, 1999-06) Gebeyehu Worku; Bedri K. Abdulhamid
    Studies on the efficiency of peasant farms are very important sources of policy advise in agriculture dominated economies such as that of Ethiopia. The importance extends to the economy at large beyond directly affecting peasants. An important factor that is central to these studies is land use arrangements' role in determining efficiency levels. Volumes of theoretical controversies and empirical evidences are documented in the literature on the impact of land use arrangements on efficiency of farmers. This study tried to investigate and analyze technical efficiency of farmers and its difference between groups of households working under different mode of land use arrangements. It also attempted to indicate some of the factors that might affect the efficiency of tenant farmers. To this effect, Cobb-Douglas stochastic frontier production function and other econometric tools are employed on a cross-sectional data of 340 households operating with similar farming practices. The mean technical efficiency of sample households is found to be around 62.8 percent indicating the existence of inefficiency and considerable potential for efficiency improvement under the given state of technology. Efficiency is found to be higher for smaller farms and households with literate household heads. Wealth of the household, level of credit, amount of fertilizer used and rainfall are found to contribute significantly to production. Regardless of differences ill the mode of landholding and tenancy associated problems, no significant efficiency gap is observed between owner-operators and tenants. On the other hand, in line with the hypothesis of the Marshallian and others, there is an indication that non-sharecroppers perform better than sharecroppers are. The way inputs are financed and decisions are made on activities has some influence on efficiency of tenants. To enhance efficiency of farmers, efforts towards providing training and extension services, forming and expanding the coverage of credit and small-scale irrigation schemes should be strengthened. Indeed, given the land use policy which provides room for land renting, the formation and functioning of land rent-lease arrangements among farmers would enable better use of resources and enhance the overall efficiency of the sector.