Browsing by Author "Medina, Menur"
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Item Causal Nexus Between Export, External Debt and Economic Growth: The Case of Ethiopia(Addis Ababa University, 2018-11) Medina, Menur; Wassie, Berhanu (PhD)This study aimed to investigate the causal nexus between Export, External debt and Growth using the annual data from 1985-2016 in the case of Ethiopia. The study applied the Auto Regressive Distributed Lag (ARDL) Approach to investigate the short run and long run dynamics of the variables whereas the Granger causality approach is used to study the nature and direction of causality between the variables. The bounds F–test for cointegration test yields evidence of a long-run relationship among the variables. The Granger Causality test result revealed that there is no evidence of Granger causal relationship between export and growth implying neither export led growth nor growth driven export is valid in the context of Ethiopia. On the other result, the study found that there is a uni directional Granger causality from external debt service to growth while there is no Granger causality between external debt stock and economic growth in both directions. Finally, our result showed that there is a bi directional Granger causality relation between investment and export implying that export and capital formation Granger cause to each other.