The Macroeconomic Impacts of Privatization in Ethiopia: A Time Series Analysis
| dc.contributor.advisor | Prof. Befekadu, Degefe | |
| dc.contributor.author | Mengistu, Alamneh Wassie | |
| dc.date.accessioned | 2020-10-08T08:13:06Z | |
| dc.date.accessioned | 2023-11-04T10:28:18Z | |
| dc.date.available | 2020-10-08T08:13:06Z | |
| dc.date.available | 2023-11-04T10:28:18Z | |
| dc.date.issued | 2020-06 | |
| dc.description.abstract | This study attempts to asses the macroeconomic impacts of privatization in Ethiopia using the data for the 1994-2018 period focusing on the growth, scal, and debt relations. The main objective of the study is to examine the growth impacts of privatization directly and in relation to the private sector development and boosting trade oppenes by overcoming the previous studies data and methodological problems. After a simple economic growth model of real GDP growth as a function of privatization proceeds, private sector contribution, gov- ernment debt stock, trade openness, and government consumption, all econometric tests have been conducted properly. All tests directed towards the econometric estimation method of error correction model to be employed. The correlation analysis of whether privatization is justi ed by the debt conditionality by the international and multilateral organizations and by the huge national budget de cit is computed. It is found that privatization highly and signi cantly cor- related with a national budget de cit but insigni cantly with debt stock. But it is found a statistically signi cant Granger causality running from debt to privatization implying there is debt conditionality for privatization in Ethiopia. The empirical evidence suggests that the debt stock a¤ects economic growth negatively both in the short run and long run indicating the debt overhang problem of the country which is a possible cause of privatization that does not have a long-lasting growth impact. The private sector development has found insigni cant to the economic growth of Ethiopia as proposed by the privatization program and other policies. Pri- vate sector contribution a¤ects economic growth negatively and only signi cant in the long run. The level of international competitiveness measured by trade openness has found a signi cant positive growth impact in the short run and but insigni cant in the long run. This shows the crucial role of competitiveness in the country. The empirical Granger causality test shows there is no causality between competitiveness and privatization that could impact economic growth by enhancing the e¢ ciency gain. Therefore the positive economic growth impact of competi- tiveness comes from the country s trade potential and not by the policy of privatization. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/22613 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Competitiveness | en_US |
| dc.subject | Error correction model | en_US |
| dc.subject | Sector contribution | en_US |
| dc.title | The Macroeconomic Impacts of Privatization in Ethiopia: A Time Series Analysis | en_US |
| dc.type | Thesis | en_US |