Browsing by Author "Gudina, Feyera"

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    The Nexus between Inflation Rate, Gross National Saving Rate And Per Capita Income Growth Rate
    (Addis Ababa University, 2015-06) Gudina, Feyera; Ragasa, Sisay (PhD)
    The study is aims at understanding the link between inflation rate, national saving rate and per capita income growth rate in Ethiopia. To achieve this objective co-integrated VAR approach was employed. The estimated models enable to understand the long run and short run relationship of the variables for the period 1980 – 2014 in Ethiopia. The result shows that there is short run and long run relationship between the variables. The long run test results show that per capita income growth rate and inflation rate exert positive and significant impact on gross national saving rate; inflation rate and gross national saving rate exerts positive and significant impact on per capita income growth rate; per capita income growth rate exerts positive and significant impact on inflation rate where as gross national saving rate exerts negative and insignificant impact on inflation rate in the long run. The short run test results show that the impact of per capita income growth rate on gross national saving rate is positive and insignificant whereas the impact of inflation rate on gross national saving rate is negative and insignificant; inflation rate and gross national saving rate exerts positive and significant impact on per capita income growth rate; gross national savings rate and per capita income growth rate influence inflation rate positively in the short run time period in Ethiopia. The impulse response function indicates that the variables are at fast movement towards long run time path. Inferences drawn will have implications for all stakeholders in the economy and are particularly useful to monetary authorities or policy makers of the country.