Browsing by Author "Geremew Adere"

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    The Effectiveness of Fiscal Policy in Driving Economic Growth in Ethiopia: A macro-economic perspective
    (A.A.U, 2024-09-07) Geremew Adere; Fantu Guta
    This study examines the effectiveness of fiscal policy in driving economic growth in Ethiopia from a macroeconomic perspective, using time-series data spanning 1991 to 2023. Employing the Autoregressive Distributed Lag (ARDL) model, focusing on key variables such as government expenditure, government revenue,ivestmet,inflation, interest rates, and real GDP growth. The analysis reveals that Ethiopia's fiscal policy, characterized by significant government spending on development projects, has contributed to sustained economic growth despite persistent fiscal deficits. However, the findings highlight challenges such as inflation volatility, inefficiencies in revenue collection, and the reliance on borrowing to finance deficits, which undermine macroeconomic stability. The study underscores the need for improved policy coordination to enhance revenue mobilization, control inflation, and optimize public spending, ensuring fiscal policy continues to support sustainable growth in Ethiopia.